Islamic Finance Industry Poised for Growth in 2025
The global Islamic finance industry is projected to maintain positive growth in 2025, driven by strong sukuk performance and GCC reforms, The Peninsula reported citing S&P Global Ratings. Qatar solidifies its leadership role through robust regulations and fintech innovation, with its sukuk market surpassing $1 trillion in 2024.
Key growth drivers include Saudi Arabia and UAE’s economic expansion, Oman and Kuwait’s reforms, and Qatar’s rising gas production. Sustainable sukuk issuance is expected to reach $10–12 billion this year, supported by climate transition plans and renewable energy targets.
Qatar recently hosted the Doha Islamic Finance Conference, emphasizing blockchain and AI’s transformative potential for ethical banking. Despite oil price volatility, GCC sovereigns retain competitive advantages to fund sustainability agendas.
Challenges include global trade tensions and regulatory hurdles, but the sector’s resilience stems from technology adoption and diversified funding. The UAE’s non-oil economy and cross-sector capital needs may further boost sukuk demand.
