The London Stock Exchange Group (LSEG), in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD) — a member of the Islamic Development Bank (IsDB) Group — has released the much-anticipated 2025 Islamic Finance Development Indicator (IFDI) report, offering a detailed analysis of the evolving world of ethical investment strategies and Islamic finance technology trends across 140 countries.
Malaysia Leads Global Islamic Finance Rankings
Malaysia has once again retained its top position globally, followed by Saudi Arabia and the United Arab Emirates. These nations continue to demonstrate strong policy leadership and investment in sharia-compliant investment frameworks. Other leading countries include Indonesia, Pakistan, Kuwait, Bahrain, Iran, Qatar, Türkiye, and Bangladesh — collectively representing the most advanced Islamic finance ecosystems in the world.
Governance scored the highest globally, driven by robust regulations, transparency, and accountability, which are vital to ethical investment strategies.
Islamic Finance Assets Expected to Reach $9.7 Trillion by 2029
According to the report, the future of Islamic finance technology trends will be shaped by stronger cross-border collaboration, digital transformation, and policy innovation. Global Islamic finance assets are projected to reach US$9.7 trillion by 2029, with an average annual growth rate of 10%.
“Looking ahead, the industry will be shaped by cross-border connectivity, regulatory advancements, and strategic national initiatives,” said Mustafa Adil, Head of Islamic Finance at LSEG. “This growth reinforces Islamic finance’s pivotal role in driving sustainable development and inclusive economies worldwide.”
Islamic Banking Dominates the Global Market
Khalid Khalafalla, Acting CEO of ICD, emphasized the resilience and inclusivity of the sector. Islamic banking continues to dominate, accounting for 72% of total industry assets and expanding into 84 markets. In sub-Saharan Africa alone, 104 Islamic banks and financial windows operate across 28 countries.
The three largest markets — Iran, Saudi Arabia, and Malaysia — collectively represent US$4.3 trillion, or 72% of global Islamic finance assets. This demonstrates the accelerating adoption of sharia-compliant investment models.
Sukuk and ESG Investments Strengthen Sustainability
The report highlights the growing integration of ethical investment strategies into Islamic finance. The global sukuk market exceeded US$1 trillion in outstanding value in 2024, with total issuance rising 11% year-on-year to US$254.3 billion.
Meanwhile, ESG sukuk surpassed US$50 billion in outstanding value, with US$15.4 billion in new issuances — a testament to the industry’s alignment with sustainability and responsible growth.
About the Islamic Finance Development Indicator
The Islamic Finance Development Indicator (IFDI) is a comprehensive global index that evaluates the progress of Islamic finance in five areas — Financial Performance, Governance, Sustainability, Awareness, and Knowledge.
It provides valuable insights for investors, regulators, and policymakers seeking to identify opportunities for reform and advancement within Islamic finance technology trends.
You can read the full IFDI 2025 report here.
Explore more financial insights and global opportunities on our travel and business hub — your trusted gateway to new markets and destinations.
This story was first reported by APO Group. Read the full article here.
