From a niche offering
to a five trillion-dollar financing opportunity

Over the past 50 years, Islamic banking has steadily gained traction and now stands as a credible and increasingly influential segment of the global financial landscape, driven by growing demand from corporates, sovereigns, and investors seeking values-driven, Shariah-compliant financial solutions.

Since 2000, Islamic banking has seen remarkable growth across key markets, with countries like Saudi Arabia, Malaysia, and Qatar significantly expanding their market share.

Islamic banking market share growth in key markets 2000-2024

Source: LSEG data. Please refer to appendix for more information.

The institutionalisation of Islamic banking is also becoming increasingly evident as more corporates integrate Islamic financing, through Sukuk (Islamic bonds), as a strategic and competitive funding option. This expansion signals a broader shift in corporate financing strategies, as corporates seek to diversify funding sources.

Corporate Sukuk issuance

Corporate Sukuk issuances have targeted both domestic and international investors. While domestic Sukuk have historically dominated, international issuances have steadily gained traction, accounting for 45 per cent of corporate Sukuk proceeds in 2024 and rising to 58 per cent in the first half of 2025. These figures highlight growing demand from investors beyond traditional Islamic finance markets, affirming Sukuk’s role as a globally relevant financing instrument.

Source: LSEG data. Please refer to appendix for more information.

Global Islamic banking landscape in numbers

Islamic banking regional development

Source: LSEG data. Please refer to appendix for more information.