Islamic Banking Sector Poised for 62% Growth by 2029, Global Assets to Reach $9.7 Trillion
Islamic Banking Sector Poised for 62% Growth by 2029, Global Assets to Reach $9.7 Trillion
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The global Islamic banking sector is projected to grow significantly over the next few years, with total assets expected to reach $9.7 trillion by 2029, reflecting a cumulative growth rate of 62%, according to Hamza Bauzir, Secretary-General of the General Council for Islamic Banks and Financial Institutions.
Recent data indicate that the Islamic finance industry was valued at approximately $5.98 trillion in 2024, operating across 140 countries. Banking assets alone are expected to increase from $5.5 trillion to $7.5 trillion by 2028, representing a cumulative growth of 36% over four years, while the Islamic banking segment is anticipated to grow by 30% in the same period.
The Gulf Cooperation Council (GCC) countries accounted for around 81% of global Islamic banking asset growth in 2024, with Saudi Arabia contributing about two-thirds of the regional increase. Asian markets, including Malaysia, Indonesia, and Bangladesh, continue to be key growth centers, particularly in retail financing and sukuk issuance.
The 2025 Global Survey of Islamic Bankers highlighted major challenges facing the sector, including shareholder value and expectations, customer acquisition and retention, digital transformation, cybersecurity, data governance, and compliance with Sharia and international standards.
Innovation remains a central focus, with efforts to develop sukuk and capital markets, expand fintech applications for youth and underserved communities, and emphasize sustainable and responsible financing. These strategies aim to strengthen the sector’s ability to deliver Sharia-compliant financial services while supporting long-term economic growth.
Amid global economic volatility, Islamic banking has demonstrated resilience due to its reliance on real assets and risk-sharing mechanisms, reducing exposure to price shocks and enhancing market stability. The sector also supports financial inclusion and investment in productive and social projects.
The General Council for Islamic Banks and Financial Institutions plans to implement strategic initiatives from 2026 to 2029, including advocacy, research publications, technical support for member institutions, and advancing corporate governance, product development, and fintech solutions to ensure the long-term sustainability of Islamic finance worldwide.
