| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2020 - 2023 |
| CAGR | 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Islamic Finance Market Analysis
The Asia-Pacific Islamic Finance Market is expected to register a CAGR of greater than 3.5% during the forecast period.
The Asia-Pacific Islamic Finance Market is poised for steady growth throughout the forecast period, driven by several factors and offering promising opportunities for expansion. Growth drivers in countries such as Bangladesh, Brunei Darussalam, Indonesia, Malaysia, and Pakistan, as well as niche expansions observed in Azerbaijan, Hong Kong, China, Kazakhstan, Singapore, and Thailand, underscore the diverse regional acceptance of Islamic finance principles.
As Malaysia and Indonesia lead the Islamic Finance Development Indicator, opportunities for further growth arise, showcasing their potential as focal points for Islamic finance expansion. With the Asian region holding the largest share (39.3%) in the global distribution of Islamic funds, opportunities lie in enhancing awareness, fostering cross-border collaborations, and leveraging technological advancements to broaden accessibility. As the market evolves, aligning with these drivers and opportunities will contribute to the continued growth and consolidation of the Asia-Pacific Islamic Finance Market.
Asia-Pacific Islamic Finance Market Trends
Emerging Islamic Finance Instruments in Asian Countries Drives the Market
Asia Pacific region is witnessing a growing popularity and awareness of Islamic finance instruments. This increasing popularity and awareness is contributing to the expansion of the Islamic finance market. Increased demand for Sharia-compliant financial products and services is driving the market. In various Asian economies, there is significant growth in Islamic finance for instance China, India, and in a few other Asian countries, Islamic finance is experiencing notable trends, with increasing interest and government support. These countries have witnessed the issuance of Islamic bonds, the establishment of Islamic banks, and a growing appetite for Sharia-compliant investments.
Countries that do have a predominantly Muslim population for instance Malaysia, Pakistan, and Indonesia are beginning to innovate digital Islamic financial instruments and hence boosting the growth of the market.
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South-East Asian Region is Leading In Islamic Finance Market
Malaysia during last year exist among the leading country in Islamic financial assets during last, ranking third globally with an asset value of USD 650 Billion. Australia, Sri Lanka, Afghanistan, Bangladesh, and Pakistan exist as the most developed Islamic finance country in Asia Pacific.
Takaful, Sukuk, and Islamic funds are among the leading Islamic finance product in the Asia Pacific region. With countries of Bangladesh, Malaysia, Maldives, Mauritius, and Indonesia having leading positions. Malaysia and Indonesia exist among the leading countries with outstanding sukuk existing at USD 279 Billion and USD 84 Billion last year. These trends signify an established and continuously expanding Islamic Finance market in the Asia Pacific region.
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Asia-Pacific Islamic Finance Industry Overview
The report covers major international players operating in the Asia-Pacific Islamic Finance Market. In terms of market share, some of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets. Maybank Islamic, Bank Rakyat, CIMB Islamic Bank, RHB Islamic Bank, Bank Islam Malaysia, Public Islamic Bank, AmBank Islamic and MBSB Bank are a few of the major market players.
Asia-Pacific Islamic Finance Market Leaders
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Maybank Islamic
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Bank Rakyat
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CIMB Islamic Bank
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RHB Islamic Bank
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Bank Islam Malaysia
- *Disclaimer: Major Players sorted in no particular order
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Asia-Pacific Islamic Finance Market News
- In February 2024, Telekom Malaysia Bhd (TM) and Maybank Islamic Bhd collaborated to provide the nation's first 5G-powered Islamic Banking as a Service (BaaS) solution. The partnership combines the best of TM's renowned Uni5G Postpaid Biz mobile products with the wide range of financial services offered by Maybank Islamic.
- In October 2023, Maybank Islamic Berhad and the digital software development company Synxsoft Sdn Bhd entered into collaboration to provide the Bank's Micro, Small, and Medium Enterprise (MSME) customers with a digitally frictionless process for obtaining Halal certification for their business.
Asia-Pacific Islamic Finance Industry Segmentation
Islamic banking, Islamic finance, or Sharia-compliant finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Maybank Islamic Berhad, Afghanistan International Bank, Standard Chartered Shaadiq Bangladesh, and Bank Syariah Mandiri are some of the leading Islamic finance institutions in Asia-Pacific.
The Asia-Pacific Islamic finance market is segmented by financial sector and geography. By financial sector, the market is sub-segmented into Islamic banking, Islamic insurance 'takaful', Islamic bonds 'sukuk', other Islamic financial institutions, and islamic funds. By geography, the market is sub-segmented into Bangladesh, Pakistan, Sri Lanka, Indonesia, Malaysia, and the rest of Asia-Pacific. The report offers market size and forecasts for the Asia-Pacific Islamic finance market in value (USD) for all the above segments.
| By Financial Sector | Islamic Banking |
| Islamic Insurance 'Takaful' | |
| Islamic Bonds 'Sukuk' | |
| Other Financial Institutions (OIFL's) and Islamic Funds | |
| By Geography | Bangladesh |
| Pakistan | |
| Sril Lanka | |
| Indonesia | |
| Malaysia | |
| Rest of Asia-Pacific |
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Asia-Pacific Islamic Finance Market Research FAQs
What is the current Asia-Pacific Islamic Finance Market size?
The Asia-Pacific Islamic Finance Market is projected to register a CAGR of greater than 3.5% during the forecast period (2025-2030)
Who are the key players in Asia-Pacific Islamic Finance Market?
Maybank Islamic, Bank Rakyat, CIMB Islamic Bank, RHB Islamic Bank and Bank Islam Malaysia are the major companies operating in the Asia-Pacific Islamic Finance Market.
What years does this Asia-Pacific Islamic Finance Market cover?
The report covers the Asia-Pacific Islamic Finance Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Asia-Pacific Islamic Finance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Asia-Pacific Islamic Finance Industry Report
Statistics for the 2025 Asia-Pacific Islamic Finance market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Asia-Pacific Islamic Finance analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
