KUALA LUMPUR, October 21, 2026 — Global Islamic finance industry assets are projected to exceed US$10.5 trillion by 2030 as Islamic banking expands, sukuk issuance gathers pace and demand grows for sustainable and digital financial products.
The projection is contained in the 2026 edition of the Islamic Finance Development Report, released on Wednesday by London Stock Exchange Group [LSEG] in collaboration with the Islamic Corporation for the Development of the Private Sector [ICD], the private sector arm of the Islamic Development Bank [IsDB] Group.
The report was launched at the Kuala Lumpur Islamic Finance Forum [KLIFF] in Malaysia.
According to the report, the global Islamic finance industry maintained strong growth in 2025, with total assets reaching US$6.5 trillion, representing a 9 percent increase from the previous year.
The growth was driven by continued expansion in Islamic banking, record sukuk issuance, strong performance by Islamic funds and the introduction of new regulatory frameworks.
Malaysia, Saudi Arabia, the United Arab Emirates, Indonesia and Pakistan retained their positions as the world’s most developed Islamic finance markets.
The report attributed their continued strength to comprehensive regulatory frameworks, strong institutional development, active financial markets and well-established knowledge ecosystems.
It also highlighted growing momentum in emerging Islamic finance markets, with Türkiye, Tanzania, Kenya, Benin, Azerbaijan and Uzbekistan recording notable improvements in performance.
The report said regulatory reforms and stronger market infrastructure were helping to expand Islamic finance beyond its traditional core markets, particularly in Africa and Central Asia.
It noted that sustainability was becoming an increasingly important priority, although activity in sustainable Islamic finance remained concentrated in developed markets.
Digitalisation is also reshaping the industry, with financial technology [FinTech], open banking and tokenised sukuk increasingly influencing financing, issuance and settlement while widening access to financial products.
However, the report identified a shortage of specialised talent as a key challenge, saying skills development had not kept pace with the industry’s expansion and calling for greater investment in specialist education.
Khalid Khalafalla, Acting Chief Executive Officer of ICD, said the developments underscored the need to position Islamic finance as a tool for inclusive and sustainable economic transformation.
“For ICD, these developments reinforce the importance of ensuring that Islamic finance serves as a practical instrument for inclusive and sustainable economic transformation,” Khalafalla said.
“ICD remains committed to advancing private-sector development across its member countries through targeted financing and the promotion of Islamic financial solutions,” he added.
Mustafa Adil, Head of Islamic Finance at LSEG, said the industry’s growth prospects remained strong, driven by expansion in emerging markets and rising demand for sustainable and digital financial solutions.
“Looking ahead, global Islamic finance assets are projected to exceed US$10.5 trillion by 2030, supported by continued Islamic banking expansion, growing sukuk issuance momentum, emerging-market adoption and demand for sustainable and digital financial solutions,” Adil said.
The report draws on the Islamic Finance Development Indicator [IFDI], a global benchmark that assesses the development of the Islamic finance industry across 140 countries.
The indicator measures performance across five key areas: financial performance, governance, sustainability, awareness and knowledge.
The report provides an overview of the global Islamic finance landscape and tracks progress in the development of financial systems aligned with Islamic principles, while helping industry stakeholders identify opportunities for further growth and reform.
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