AhlulBayt News Agency (ABNA): A new study released by HTF MI Research on the global Islamic financing market indicates that the sector is projected to expand at an average annual growth rate of around 10 percent, reaching a value close to $5 billion by 2031. The current size of the market is estimated at approximately $2.56 billion.
According to the report, Islamic financing comprises a range of Shariah-compliant banking, investment, and insurance services that emphasize the prohibition of interest, avoidance of excessive risk, and a focus on ethical, asset-backed investments.
The study identifies major banks and financial institutions from the Middle East, South Asia, and Southeast Asia as key market players. It also highlights the growth of digital Islamic banking, the expanding issuance of sukuk for infrastructure and sustainable projects, and rising interest from non-Muslim investors in Shariah-compliant financial products as among the most significant market trends.
The research further cites population growth in Muslim-majority communities, supportive government regulations, increasing demand for ethical financial products, and the expansion of cross-border trade as key drivers of market growth. Analysts say emerging markets in Southeast Asia, Africa, and the Middle East are expected to offer the strongest growth potential in the coming years.
By examining regional, sectoral, and application-level dynamics, the report aims to present a comprehensive picture of the current state of the global Islamic financing industry, its opportunities and challenges, and the strategic pathways ahead.
