Kuala Lumpur: Malaysia’s Islamic finance assets are projected to grow by 36 per cent by 2028, contributing to the global Islamic finance market, which is expected to reach US$7.5 trillion (US$1 = RM4.29) by then, said Standard Chartered Bank Malaysia Bhd. The bank, through its ‘Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts’ report, revealed that the projection for global Islamic finance assets was up from US$5.5 trillion in 2024, reflecting the expanding relevance of shariah-compliant finance globally.
According to BERNAMA News Agency, in 2024, the Islamic finance industry surpassed US$5 trillion in global assets, marking a 12 per cent rise from 2023 and a 43 per cent increase from 2020. Islamic banking accounts for over 70 per cent of total Islamic finance assets, with assets projected to grow from US$4 trillion in 2024 to US$5.2 trillion by 2028. The sukuk market is expected to expand from US$971 billion to US$1.5 trillion during this period.
With Malaysia being one of the top five leaders in Islamic finance assets, it is evident that Islamic banking is entering a new phase of growth defined by scale, sustainability, and strategic integration, said Standard Chartered Saadiq Malaysia chief executive officer Bilal Parvaiz. This reflects strong fundamentals and global appetite for ethical and inclusive finance and aligns with Malaysia’s positioning as a global leader championing the development and innovation of Islamic finance, especially in integrating financial practices with sustainable and ethical impact via value-based intermediation.
The report provides financial institutions with insights into the Islamic finance landscape, including findings from the “Pulse of Islamic Banking” 2025 survey, covering growth drivers, regulatory developments, and market expansion opportunities. It addresses key challenges such as regulation, liquidity, and risk management and explores oversight frameworks, innovation pathways, and environmental, social, and governance (ESG) integration, complemented by market spotlights and real-world case studies.