The global Islamic finance industry is projected to exceed $6 trillion in total assets by the end of 2026, driven by strong growth in banking, sukuk, takaful, and Islamic fintech. According to the AlHuda Centre of Islamic Banking and Economics, global assets reached $5.2 trillion in 2025, reflecting a year-on-year increase of 14.9 percent.
CEO Zubair Mughal noted that the sector has become systemically important for international finance despite inflation, geopolitical tensions, and tighter global financial conditions. Islamic banking remains the largest segment, contributing 72 percent of total assets, with financing up more than 17 percent and deposits increasing nearly 9 percent in 2025.
Growth was particularly robust in the Gulf Cooperation Council, Asia, and several African markets, with some African countries reporting growth above 20 percent. The sukuk market also saw strong performance, with global issuance exceeding $230 billion in 2025. New entrants such as Tanzania, Zambia, and Kenya helped integrate Africa into global sukuk markets, although liquidity and investor concentration remain challenges.
Other segments, including Islamic funds and ESG-aligned products, showed moderate growth, while Islamic fintech emerged as the fastest-growing area. Fintech now accounts for three percent of total Islamic finance assets and is expanding rapidly through digital payments, Shariah-compliant buy-now-pay-later solutions, embedded finance, and applications of AI and blockchain, especially in Africa and South Asia.
Asia and the GCC still hold more than half of all Islamic finance assets, yet Africa remains the fastest-growing frontier. Ethiopia, Ghana, Uganda, and Somalia/Somaliland are expected to formally enter the market in 2026, while European countries including Italy, Switzerland, Portugal, and the Netherlands are exploring Islamic banking frameworks.
Looking ahead, Mughal emphasized opportunities in capital market development, cross-border fintech expansion, and Africa-focused infrastructure finance, but he warned that regulatory gaps, market concentration, and fragmentation must be addressed for sustainable growth. He concluded that with assets on track to exceed $6 trillion, Islamic finance is shifting from regional concentration to global significance.
