Islamic Finance Market to Reach USD 8.07 Tillion by 2032

According to analysts at Vantage Market Research, the Global Islamic Finance Market size is worth USD 3.5 Tillion in 2023 and is projected to reach USD 8.07 Tillion by 2032, growing at a CAGR (Compound Annual Growth Rate) of 9.7% from 2024 to 2032. The Market is driven by rising demand for Sharia-compliant financial products, increasing awareness of ethical and sustainable investment options, growing Muslim populations, and advancements in fintech solutions.

Market Overview

The global Muslim population is steadily increasing, which significantly drives the demand for Sharia-compliant banking and investment products. As more Muslims seek financial solutions that adhere to Islamic principles, there is a rising preference for ethical financial instruments that avoid interest (riba), uncertainty (gharar), and speculative investments. This demand extends beyond personal banking into areas such as Islamic mortgages, insurance (Takaful), and investment funds, creating opportunities for banks and financial institutions to expand their Sharia-compliant offerings. This trend is particularly strong in regions with high Muslim populations, such as the Middle East, Southeast Asia, and parts of Africa, but it is also growing in non-Muslim countries with significant Muslim communities.

The demand for Sharia-compliant financial products is rising not only in Muslim-majority countries but also in non-Muslim countries, driven by a growing global interest in ethical and socially responsible finance. Sharia-compliant products appeal to a broader audience due to their focus on fairness, transparency, and avoidance of harmful activities such as gambling and alcohol-related businesses. Non-Muslim countries, particularly in Europe and North America, are seeing increased interest in Islamic finance solutions, both from Muslim communities and from investors seeking ethical investment opportunities.

Abu Dhabi Islamic Bank Increases Ownership in ADIB Egypt to Over 52%

• Abu Dhabi Islamic Bank (ADIB) has raised its stake in ADIB Egypt to over 52% by acquiring 9.6 million shares from the National Investment Bank (NIB), representing 2.4% of ADIB Egypt's share capital. This transaction has increased ADIB UAE's ownership in its Egyptian subsidiary to 52.607%, as reported to the Abu Dhabi Securities Exchange (ADX)

Top Companies

• Al Baraka Banking Group
• Bank Islam Malaysia
• Abu Dhabi Islamic Bank
• Maybank Islamic
• Al Hilal Bank
• Al Rajhi Bank
• Ajman Bank
• Kuwait Finance House
• Boubyan Bank
• Sharjah Islamic Bank
• Bahrain Islamic Bank
• Noor Bank
• Qatar Islamic Bank
• Dubai Islamic Bank
• CIMB Islamic

Report Coverage

Our market research reports provide comprehensive insights that are essential for strategic decision-making. We cover all key aspects of the market, including dynamics such as drivers, restraints, opportunities, and challenges, alongside the latest industry trends. Our analysis includes an in-depth technology roadmap, product life cycle evaluation, and PESTLE analysis, ensuring a thorough understanding of the market environment. We also assess GDP growth outlooks, examine regional market landscapes, and evaluate the impact of major events like the COVID-19 pandemic. Additionally, our reports feature a detailed competitive landscape, including company market shares and profiles, providing actionable intelligence to empower your business strategies.

Latest News

Kuwait Finance House to Acquire Ahli United Bank in Share Swap Deal

• Kuwait Finance House (KFH) has agreed to acquire Bahrain-based Ahli United Bank (AUB) through a share swap arrangement. The merger will create a combined entity with assets worth USD 115 billion, expected to become the seventh-largest bank in the Gulf region. According to the revised terms, KFH will exchange one of its shares for every 2.695 shares of Ahli United, leading to an offer price of USD 1.04 per share