According to the AlHuda Centre of Islamic Banking and Economics, global assets reached $5.2 trillion in 2025, up 14.9% year-on-year.

CEO Zubair Mughal noted that the sector has become a systemically important component of international finance despite inflation, geopolitical risks, and tighter financial conditions.

Islamic banking remains the largest segment, accounting for 72% of total assets, with financing up more than 17% and deposits growing nearly 9% in 2025.

Growth was particularly strong in the Gulf Cooperation Council (GCC), Asia, and several African markets, with some African countries posting increases above 20%.

The sukuk market also performed well, with global issuance exceeding $230 billion in 2025.

New entrants, including Tanzania, Zambia, and Kenya, helped integrate Africa into global sukuk markets, although secondary market liquidity and a concentrated investor base 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 represents 3% of total assets and is expanding rapidly through digital payments, Shariah-compliant BNPL, 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, but Africa is 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 highlighted opportunities in capital market development, cross-border fintech expansion, and Africa-focused infrastructure finance, but warned that regulatory gaps, market concentration, and fragmentation must be addressed for long-term stability.

“With assets on track to cross $6 trillion, Islamic finance is moving from regional concentration to global relevance,” Mughal said.