AhlulBayt News Agency (ABNA): As the Islamic finance industry marks the 50th anniversary of the establishment of the world’s first Islamic commercial bank in 1975, it has reached a new milestone in its global development. According to the “Islamic Finance Development Report 2025,” total global Islamic finance assets rose by 21% year-on-year in 2024 to $5.98 trillion, underscoring the sector’s resilience amid challenging global economic conditions.
The report, jointly prepared with the participation of the Islamic Corporation for the Development of the Private Sector (ICD) and the London Stock Exchange Group (LSEG), examines key growth trends, regional developments, and the expanding role of Islamic finance across global markets. The industry assessment is based on five pillars, financial performance, governance, knowledge, sustainability, and awareness, and incorporates data from more than 140 countries.
Initially emerging as a niche, ethics-based financing option, the Islamic finance market is now active in over 80 countries. Following the 2008 global financial crisis, it gained prominence as a lower-risk alternative to conventional banking systems. Instruments such as sukuk, takaful, and Shariah-compliant investment funds have played a central role in market expansion and in attracting a broader base of investors.
The report identifies Malaysia as the largest Islamic finance market with $2.249 trillion in assets, followed by Saudi Arabia with $1.316 trillion and Indonesia with $761 billion. Iran and the United Arab Emirates are also cited as major players in the sector.
Looking ahead, the report projects that global Islamic finance assets could reach approximately $9.7 trillion by 2029. This growth is expected to be driven by a stronger focus on sustainable finance, fintech innovations, cross-border cooperation, and the strengthening of regulatory frameworks across different jurisdictions.
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