Islamic Finance assets to Reach $7.5 Trillion by 2028

Reflecting the expanding relevance of Shariah-compliant finance globally, the Global Islamic finance assets will reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, Standard Chartered said on Monday.

In its comprehensive report entitled “Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts” which was released on Monday, the report projects that in 2024, the Islamic finance industry surpassed $5 trillion in global assets — a 12% rise from 2023 and 43% increase from 2020.

Islamic banking accounts for over 70% of total Islamic finance assets, and assets projected to grow from $4 trillion in 2024 to $5.2 trillion by 2028. The Sukuk market is expected to expand from $971 billion to $1.5 trillion during this period, the report said.

Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, said that “Islamic finance is entering a new era defined by scale, sustainability and strategic integration. The projected 36% increase in assets reflects strong fundamentals and global appetite for ethical and inclusive finance.

The report provides financial institutions with insights covering the Islamic finance landscape and insights from the “Pulse of Islamic Banking” client survey 2025.

It examines growth drivers, regulatory developments, and market expansion opportunities, whilst addressing challenges in regulation, liquidity, and risk management. Furthermore, it also explores market oversight frameworks, innovation pathways, and ESG integration, supplemented by market spotlights featuring real-world solution case studies.

Khurram added: “Fostering innovation, strengthened market connectivity, and sustainability will unlock the greatest opportunities in the future of Islamic finance.”

As the only international bank with a global Islamic banking franchise, Standard Chartered Saadiq, the Bank offers Shariah-compliant solutions to financial institution, corporates, wealth, retail and private banking client segments in over 25 countries.

In the early years of Islamic finance, adoption was limited to a handful of markets. Now, a network of over 1,980 Islamic financial institutions delivers Islamic finance products and solutions across more than 90 markets worldwide.

Yet despite this expansive market reach, 80% of industry assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, the UAE and Kuwait.

Assets Concentrated in MENA

According to the report, the reach of Islamic banking is still evolving. Currently, a substantial 85% of the sector’s assets are concentrated in the MENA region despite there being more than 600 Islamic banks across 75 countries at the end of 2024 – including the conventional banks with Islamic windows.

However, the sector’s influence is deeper in more markets as Islamic banking is systemic in 15 countries that go beyond MENA to Southeast Asia and South Asia.

Sukuk issuance remains concentrated in the Gulf Cooperation Council (GCC), Southeast Asia, Türkiye, and Pakistan. However, Egypt, the Philippines, and Kenya emerged with more corporate and sovereign issues in recent years.

Sukuk has increasingly been attracting a wider range of buyers, proving popular with non-Muslim investors, which has helped to narrow a notable gap in demand and supply. Sukuk is expected to form a more prominent portion of assets in the Islamic finance industry in the future, as demand for Shariah-compliant financial instruments grows, the report said.