Global Islamic finance assets will reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, reflecting the rapid expansion and growing relevance of Shariah-compliant finance in global markets, Standard Chartered said in a report.
‘Islamic banking’ is the largest contributor to the Islamic finance industry, accounting for over 70 per cent of total Islamic finance assets, said the report titled ‘Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts’.
The report projected Islamic banking assets to grow to $5.2 trillion by 2028 from $4 trillion in 2024.
Meanwhile, the sukuk market is set to rise from $971 billion to nearly $1.5 trillion over the same period, the report said.
Khurram Hilal, CEO, Group Islamic Banking, Standard Chartered, said Islamic finance is entering a new era that is defined by scale, sustainability, and strategic integration.
“A 36 per cent projected increase in assets reflects the sector’s strong fundamentals and global appetite for ethical and inclusive finance,” he said.
The comprehensive report examines growth drivers including regulatory developments and market expansion opportunities, while addressing challenges related to regulation, liquidity, and risk management.
The report also explores market oversight frameworks, innovation pathways, and ESG integration, supplemented by market spotlights featuring real-world solution case studies.
Standard Chartered, which offers Shariah-compliant solutions to financial institution, corporates, wealth, retail and private banking client segments in over 25 countries through its Saadiq programme, said the bank aims to play a pivotal role in the segment in future, collaborating, adapting, and delivering value to their clients globally.
