Global Islamic finance assets are expected to surge to $7.5t by 2028, up from $5.5t in 2024, as detailed in a new report by Standard Chartered. This growth underscores the increasing global significance of Shariah-compliant finance, with Islamic banking alone accounting for over 70% of these assets.
The report, titled “Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts,” highlights a 36% projected increase in assets, driven by strong fundamentals and a growing demand for ethical and inclusive finance. Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, remarked, “Islamic finance is entering a new era defined by scale, sustainability, and strategic integration.”
Key insights from the report include the expansion of the Sukuk market, which is anticipated to grow from $971b to $1.5t by 2028. The report also explores growth drivers such as regulatory developments and market expansion opportunities, whilst addressing challenges in regulation, liquidity, and risk management.
Standard Chartered, through its global Islamic banking franchise, Saadiq, offers Shariah-compliant solutions across 25 countries, catering to financial institutions, corporates, and retail clients. As the only international bank with such a franchise, it aims to foster innovation and sustainability in the Islamic finance sector.
Looking ahead, the report suggests that fostering innovation and strengthening market connectivity will unlock significant opportunities in the future of Islamic finance.
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