LSEG in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank (IsDB) Group, today announced the findings of the 2025 Islamic Finance Development Indicator (IFDI) report, a global benchmark assessing the development of the Islamic finance industry across 140 countries.
Malaysia maintained its top position in the global rankings, followed by Saudi Arabia and the United Arab Emirates, reflecting their continued investment and policy leadership in developing Islamic finance ecosystems. Indonesia, Pakistan, Kuwait, Bahrain, Iran, Qatar, Türkiye, and Bangladesh completed the top rankings, collectively representing the most advanced and diversified Islamic finance markets worldwide. Governance recorded the highest average score globally, driven by robust regulatory frameworks and enhanced disclosure standards.
Mustafa Adil, Head of Islamic Finance, LSEG, said:
“Looking ahead, the industry will be shaped by cross-border connectivity, regulatory advancements, and strategic national initiatives. Based on current trajectories, global Islamic finance assets are projected to reach US$9.7 trillion by 2029, growing at an average annual rate of 10%. This underscores Islamic finance’s vital role in supporting sustainable economic growth and financial inclusion globally.”
Khalid Khalafalla, Acting Chief Executive Officer (ACEO) of ICD, added:
“The IFDI continues to serve as a vital benchmark for policymakers and market participants. It reflects the sustained efforts of governments and institutions to create an inclusive and resilient Islamic finance ecosystem, one that supports real economies and aligns with global development objectives. These goals are intrinsically linked to ICD's mission to foster private sector development and advance Islamic finance across its member countries.”
The report also highlights the industry’s resilience and growing mainstream relevance. The global sukuk market surpassed US$1 trillion in outstanding value in 2024, despite persistent macroeconomic headwinds. Total global sukuk issuance reached US$254.3 billion, up 11% year-on-year. Meanwhile, ESG sukuk surpassed US$50 billion in outstanding value, with US$15.4 billion in new issuances, marking the increasing integration of sustainability into Islamic finance.
Islamic banking continues to dominate the sector, accounting for 72% of total industry assets, and expanding its presence to 84 markets globally, including growing momentum across sub-Saharan Africa, where 104 Islamic banks and windows now operate across 28 countries. The three largest markets, Iran, Saudi Arabia, and Malaysia, collectively represent US$4.3 trillion, or 72% of global Islamic finance assets.
The Islamic Finance Development Indicator (IFDI) is a composite weighted index that assesses the development of Islamic finance across five key areas, Financial Performance, Governance, Sustainability, Awareness, and Knowledge. It provides a holistic view of the global Islamic finance landscape, measuring progress in alignment with Islamic principles and supporting stakeholders in identifying opportunities for growth and reform.
Read full report: Link
