The global Islamic finance industry is entering 2026 with powerful momentum as total assets surge toward the $6 trillion mark, driven by robust expansion across banking, capital markets, takaful, and a rapidly rising Islamic FinTech sector.

According to a new assessment shared by the AlHuda Centre of Islamic Banking and Economics, global Islamic finance assets climbed to $5.2 trillion in 2025, reflecting 14.9 per cent year-on-year growth.

Islamic banking remains the backbone of the industry, accounting for 72 per cent of total assets - more than $2.7 trillion. Financing grew more than 17 per cent year-on-year in 2025, while deposits expanded by nearly 9 per cent, buoyed by strong activity in the GCC, Asia, and a growing cluster of African markets.

The sukuk market was one of 2025's standout performers. Global issuance surpassed $230 billion in 2024 and continued expanding in 2025, supported by sovereign borrowing needs and infrastructure financing. New entrants - including Tanzania, Zambia, and Kenya - helped integrate Africa more firmly into global sukuk markets.

The fastest-growing segment is Islamic FinTech - now representing 3 per cent of total assets. Digital payments, Shariah-compliant BNPL, embedded finance, and applications of AI and blockchain have enabled the subsector to achieve "regional scale" in several markets, with double-digit transaction growth.

Geographically, Asia and the GCC still dominate, jointly accounting for more than 50 per cent of Islamic finance assets. But Africa is now the fastest-growing frontier. Europe, too, is showing renewed interest, with Italy, Switzerland, Portugal, and the Netherlands exploring Islamic banking frameworks.

Khaleej Times

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Global Islamic finance set to hit $6 trillion in 2026 as industry posts strong double-digit growth.