Global Islamic Finance Assets Projected to Surpass $7.5 Trillion by 2028

Karachi: Standard Chartered has announced in its latest report that global Islamic finance assets are anticipated to exceed $7.5 trillion by 2028. This projection marks a significant growth of 36% over the next four years, as the sector undergoes expansion and transformation. The report, titled “Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts,” was released on May 20, 2025.

According to the report, the Islamic finance industry recorded global assets exceeding $5 trillion in 2024, a 12% increase from the previous year and a substantial 43% rise since 2020. Islamic banking, which comprises over 70% of the total Islamic finance assets, is expected to see its assets grow from $4 trillion in 2024 to $5.2 trillion by 2028. Additionally, the Sukuk market is predicted to expand from $971 billion to $1.5 trillion during this period.

Khurram Hilal, the CEO of Group Islamic Banking at Standard Chartered, emphasized that Islamic finance is entering a new era characterized by scale, sustainability, and strategic integration. He noted that the anticipated 36% increase in assets indicates strong fundamentals and a growing global demand for ethical and inclusive financial solutions.

The report offers financial institutions a comprehensive overview of the Islamic finance landscape, supported by insights from the “Pulse of Islamic Banking” client survey 2025. It delves into growth drivers, regulatory developments, and market expansion opportunities, while also addressing challenges such as regulation, liquidity, and risk management. The report further explores market oversight frameworks, innovation pathways, and the integration of environmental, social, and governance (ESG) factors, supplemented by real-world case studies.

Khurram concluded that fostering innovation, enhancing market connectivity, and prioritizing sustainability will unlock significant opportunities for the future of Islamic finance. As the sole international bank with a global Islamic banking franchise, Standard Chartered Saadiq offers Shariah-compliant solutions to a wide range of clients, including financial institutions, corporations, and individuals, across more than 25 countries.

The full report is available on Standard Chartered’s website for those seeking further details.