A $4 trillion expansion in five years
Global Islamic finance assets are forecast to grow from $6.5 trillion in 2025 to $10.5 trillion by 2030, an increase of 61.5% or about 9% a year, according to the 2026 Islamic Finance Development Report from the Islamic Corporation for the Development of the Private Sector (ICD) and LSEG.
The 2025 numbers
Global sukuk issuance rose 14.5% to a record $291.4 billion.
Islamic banking assets grew 8% across 84 countries.
Islamic fund assets rose 22% to $375 billion.
Takaful assets rose 9% to $146 billion, with the GCC holding 21% of the total.
ESG sukuk issuance jumped 54% to a record $23.8 billion.
Where the Gulf stands
In the report's Islamic Finance Development Indicator, Malaysia ranks first with a score of 136, followed by Saudi Arabia at 113 and the UAE at 95, then Indonesia and Pakistan. Saudi Arabia is the largest sukuk market by outstanding value, and together with Malaysia holds about two-thirds of all outstanding sukuk. It also ranks second in Islamic non-bank financial assets. GCC banks stayed resilient despite the regional conflict, supported by capitalization, asset quality and sovereign backing.
Issuers are tapping the market actively: Emirates Islamic issued $500 million and Dubai Islamic Bank $1 billion in sustainability-linked sukuk. Benin's debut $500 million sukuk drew orders above $7 billion, and Uzbekistan's planned sovereign sukuk program could raise up to $10 billion.
Opportunities and obstacles
Khaled Ramadan, head of the International Center for Strategic Studies in Cairo, told Arab News that sukuk can fund long-term infrastructure. He also pointed to challenges: regulatory and Shariah divergence between markets, thin secondary-market liquidity, a shortage of specialists and high issuance costs.
What it means for investors
For investors in the Gulf and Palestine, Shariah-compliant products are a core part of client demand, and the report points to a deeper pipeline of sukuk, funds and takaful options. Thin secondary liquidity remains the main practical constraint when holding sukuk to maturity is not an option.
What to watch
Sovereign sukuk programs from new issuers such as Uzbekistan.
Growth of ESG-labelled sukuk, which outpaced the wider market in 2025.
Efforts to harmonize Shariah standards across jurisdictions.
