The London Stock Exchange Group (LSEG) and the Islamic Corporation for the Development of the Private Sector (ICD) have unveiled the 2025 Islamic Finance Development Indicator (IFDI) report, which evaluates the Islamic finance industry’s progress across 140 countries. The report forecasts that global Islamic finance assets will soar to US$9.7 trillion by 2029, growing at an annual rate of 10%.
Malaysia has retained its top position in the global rankings, followed by Saudi Arabia and the United Arab Emirates, thanks to their strong governance and policy innovation. Other countries in the top rankings include Indonesia, Pakistan, and Kuwait. Mustafa Adil, Head of Islamic Finance at LSEG, highlighted the industry’s future, stating, “The industry will be shaped by cross-border connectivity, regulatory advancements, and strategic national initiatives.”
The report also notes the resilience of the sukuk market, which surpassed US$1t in outstanding value in 2024. Total global sukuk issuance increased by 11% year-on-year, reaching US$254.3b. ESG sukuk, which integrates sustainability into Islamic finance, has also grown significantly, with US$15.4b in new issuances.
Islamic banking remains dominant, accounting for 72% of total industry assets and expanding to 84 markets globally. The largest markets—Iran, Saudi Arabia, and Malaysia—represent US$4.3t of global Islamic finance assets. Khalid Khalafalla, Acting CEO of ICD, remarked, “The IFDI continues to serve as a vital benchmark for policymakers and market participants.”
The IFDI assesses Islamic finance development across five areas: Financial Performance, Governance, Sustainability, Awareness, and Knowledge, providing a comprehensive view of the industry’s landscape.
