Islamic Finance Market Size (2024 - 2029)

The market size of the Islamic Finance Market is projected to expand significantly in the coming years, as indicated by its expected CAGR growth. Despite facing challenges due to the COVID-19 pandemic, the industry has shown resilience with an increase in total net income reported by Islamic financial institutions worldwide. The easing of pandemic restrictions and the consequent rise in global oil demand, coupled with increased crude oil prices, have alleviated budgetary pressures on economies dependent on oil revenues, further contributing to the market's growth.

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Market Size of Islamic Finance Industry

Islamic Finance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) > 10.00 %
Fastest Growing Market Asia Pacific
Largest Market Middle East and Africa
Market Concentration Low

Major Players

Islamic Finance Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Islamic Financial Market Analysis

The Islamic Finance Market is expected to register a CAGR of greater than 10% during the forecast period(2024-2029).

 In 2021, the total net income reported by Islamic financial institutions around the world went from USD 10.5 billion in 2020 to USD 32 billion. This shows that things are getting better, especially for Islamic banks.

The Islamic finance industry had another tough year, with many markets slowly getting back up to speed and countries reopening their economies. But new waves of the COVID-19 virus, first the Delta variant and then the Omicron variant, stopped the progress. The new COVID-19 waves caused new lockdowns or safety measures, which again messed up global supply chains and made it more expensive to move things. The year 2021 ended on a better note because most countries were able to loosen their pandemic-related rules because they had high vaccination rates. Because of this, the world's demand for oil went up faster than it could be made, since OPEC+ production limits were locked in by an agreement signed in late 2020. Consequently, crude oil prices increased in 2021, with the spot prices of Brent and West Texas Intermediate (WTI) crude oil closing the year at USD 77.78 and USD 75.21, respectively, up from USD 51.09 and USD 47.62 at the start of January. This eased budgetary pressures on the GCC economies that depend on oil revenues.

Islamic Financial Industry Segmentation

Islamic finance started 50 years ago in countries with many Muslims who wanted to ensure that their money sources followed Shariah and other Islamic principles. Islamic Banking, Islamic Insurance (Takaful), Other Islamic Financial Institutions (OIFLs), Islamic Bonds (Sukuk), and Islamic Funds are all different parts of the global Islamic finance market. By geographic region, the Islamic Finance market can be segmented into the Gulf Cooperation Council (Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, and Oman), the Middle East and North Africa (Iran, Egypt, and the Rest of MENA), South Asia and Asia-Pacific (Malaysia, Indonesia, Brunei, Pakistan, and the Rest of South Asia and Asia-Pacific), Europe (the United Kingdom, Ireland, Italy, and the Rest of Europe), and the Rest of the World. The report also gives a complete background analysis of the global Islamic finance market, including analysis and forecast of market size, market segments, industry trends, and growth drivers. The report offers market size and forecasts for the Islamic Finance Market in value (USD) for all the above segments.

By Financial Sector
Islamic Banking
Islamic Insurance : Takaful
Islamic Bonds 'Sukuk'
Other Islamic Financial Institution (OIFI's)
Islamic Funds
By Geography
GCC
Saudi Arabia
UAE
Qatar
Kuwait
Bahrain
Oman
MENA
Iran
Egypt
Rest of Middle East & North Africa
Southeast Asia & Asia-Pacific
Malaysia
Indonesia
Brunei
Pakistan
Rest of Southeast Asia and Asia-Pacific
Europe
United Kingdom
Ieland
Italy
Rest of Europe
Rest of the World

Islamic Finance Market Size Summary

The Islamic Finance Market is predicted to witness a significant growth in the coming years, with a compound annual growth rate (CAGR) of over 10% during the forecast period. This industry has seen a substantial increase in net income worldwide, indicating a positive trend for Islamic banks. Despite facing challenges due to the global pandemic and subsequent economic disruptions, the market managed to recover as countries reopened their economies and eased pandemic-related restrictions. Particularly, the rise in global oil demand and consequent increase in crude oil prices have alleviated budgetary pressures on economies that rely heavily on oil revenues. The Islamic Finance Market is characterized by its diversity, with Malaysia leading in terms of Islamic Finance Development Indicator score value. The country has established a robust regulatory framework that promotes the growth of Islamic banking and finance, offering a wide array of Islamic financial products and services. The takaful industry, or Islamic insurance, although a smaller segment, has also experienced significant growth. The market is seeing increased competitiveness and consolidation, with several mergers occurring within the industry. The market landscape is fragmented, with numerous players vying for a substantial share of this growing market. The presence of both local and international players contributes to the dynamic and competitive nature of this industry.

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Islamic Finance Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Insights on Top Islamic Finance Development Indicator (IFDI) Market

      2. 1.1.2 Insights on Countries with Highest Islamic Finance Assets

      3. 1.1.3 Insights on Countries with Highest Islamic Banking Assets

      4. 1.1.4 Insights on Islamic Insurance Growth

      5. 1.1.5 Insights on Regulatory Requirement of Islamic Finance

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers/Consumers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Financial Sector

      1. 2.1.1 Islamic Banking

      2. 2.1.2 Islamic Insurance : Takaful

      3. 2.1.3 Islamic Bonds 'Sukuk'

      4. 2.1.4 Other Islamic Financial Institution (OIFI's)

      5. 2.1.5 Islamic Funds

    2. 2.2 By Geography

      1. 2.2.1 GCC

        1. 2.2.1.1 Saudi Arabia

        2. 2.2.1.2 UAE

        3. 2.2.1.3 Qatar

        4. 2.2.1.4 Kuwait

        5. 2.2.1.5 Bahrain

        6. 2.2.1.6 Oman

      2. 2.2.2 MENA

        1. 2.2.2.1 Iran

        2. 2.2.2.2 Egypt

        3. 2.2.2.3 Rest of Middle East & North Africa

      3. 2.2.3 Southeast Asia & Asia-Pacific

        1. 2.2.3.1 Malaysia

        2. 2.2.3.2 Indonesia

        3. 2.2.3.3 Brunei

        4. 2.2.3.4 Pakistan

        5. 2.2.3.5 Rest of Southeast Asia and Asia-Pacific

      4. 2.2.4 Europe

        1. 2.2.4.1 United Kingdom

        2. 2.2.4.2 Ieland

        3. 2.2.4.3 Italy

        4. 2.2.4.4 Rest of Europe

      5. 2.2.5 Rest of the World

Islamic Finance Market Size FAQs

The Islamic Finance Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Bank Al-Rajhi , Dubai Islamic Bank, Kuwait Finance House, Qatar Islamic Bank and National Commercial Bank Saudi Arabia are the major companies operating in the Islamic Finance Market.

Islamic Finance Market Report Snapshots

Islamic Financial Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)