Malaysia has once again retained its position as the world’s leading Islamic finance market, according to the 2025 Islamic Finance Development Indicator (IFDI) report released by the London Stock Exchange Group (LSEG) in partnership with the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank (IsDB) Group.
The annual IFDI benchmark, which measures the progress of Islamic finance across 140 countries, ranks Saudi Arabia and the United Arab Emirates (UAE) in second and third places, reflecting the trio’s sustained policy leadership and investment in robust Islamic finance ecosystems.
Other countries in the top 10 include Indonesia, Pakistan, Kuwait, Bahrain, Iran, Qatar, Türkiye, and Bangladesh, showcasing the diversity and maturity of global Islamic finance markets.
According to the report, governance achieved the highest global average score, underscoring strengthened regulatory frameworks, improved transparency, and enhanced disclosure standards among leading jurisdictions.
Mustafa Adil, Head of Islamic Finance at LSEG, said the industry’s future will be shaped by cross-border collaboration, regulatory innovation, and national strategic initiatives.
“Global Islamic finance assets are projected to reach US$9.7 trillion by 2029, growing at an annual average rate of 10%, underscoring the sector’s crucial role in fostering sustainable economic growth and financial inclusion worldwide,” he stated.
Khalid Khalafalla, Acting CEO of ICD, echoed the sentiment, adding that the IFDI serves as a vital reference for policymakers and market players.
“It highlights the continued commitment of governments and institutions to build an inclusive and resilient Islamic finance ecosystem that supports real economies and aligns with global development goals,” he said.
Global Islamic Finance Growth Remains Strong
The Islamic finance industry continues to demonstrate remarkable resilience, despite global economic challenges.
The global sukuk market has surpassed US$1 trillion in outstanding value, with total issuances rising 11% year-on-year to US$254.3 billion in 2024. Sustainability-linked issuances also expanded, with ESG sukuk reaching US$50 billion outstanding and US$15.4 billion in new issuances — reflecting the sector’s growing alignment with sustainability goals.
Islamic banking remains the dominant segment, accounting for 72% of total industry assets, with operations now spanning 84 markets globally. The Sub-Saharan African region has also experienced notable expansion, now home to 104 Islamic banks and windows across 28 countries.
Collectively, Iran, Saudi Arabia, and Malaysia represent US$4.3 trillion, or 72% of total global Islamic finance assets, reaffirming Malaysia’s leadership role in advancing the Islamic finance industry worldwide.
Sumber: Business Today.
