StanChart Forecasts Islamic Finance Asset Size by 2028
London-based Standard Chartered has released a report forecasting the growth of Islamic finance and insights from clients in the market.
Islamic finance assets will reach $7.5 trillion by 2028, according to a Standard Chartered report entitled «Islamic banking for financial institutions», up from $5.5 trillion in 2024.
Islamic banking accounts for over 70 percent of this amount with assets projected to grow from $4 trillion in 2024 to $5.2 trillion by 2028. The sukuk market, also known as Sharia-compliant bonds, is expected to expand from $971 billion to $1.5 trillion during this period.
Client Insights
The report also explored a variety of insights from Islamic finance clients. For example, green sukuk and financing was identified as the most important product innovation by Islamic banks. Economic corridors such as China, the Middle East and Africa’s are expected to offer the greatest opportunities over the next two to three years. And in technology, 50 percent of Islamic banks have adopted or plan to adopt AI.
«Islamic finance is entering a new era defined by scale, sustainability and strategic integration,» said Khurram Hilal, CEO of group Islamic banking at Standard Chartered.
The report was based on publicly available data as well as a survey of 26 representatives from leading Islamic banks in key markets, including Saudi Arabia, the UAE, Bahrain, Oman, Pakistan and the United Kingdom.
Standard Chartered’s global Islamic banking franchise, Standard Chartered Saadiq, offers Shariah-compliant solutions to financial institutions, corporates, wealth, retail and private banking client segments in over 25 countries.
