Global Islamic finance assets seen reaching $9.7t by 2029: LSEG

Malaysia remains on top of the Islamic finance development rankings.

Islamic finance assets are expected to expand 10% on average each year and reach $9.7t by 2029, according to estimates by the London Stock Exchange Group (LSEG) and the Islamic Corporation for the Development of the Private Sector (ICD) released in October 2025.

Malaysia maintained its top spot in the Islamic finance development rankings, based on an index prepared by LSEG and ICD. In 2024, Islamic financing accounted for over 46% of Malaysia’s total financing, whilst its takaful sector accounted for nearly 24% of industry premiums.

Malaysia also accounts for 36% of outstanding global sukuk, the study said.

Globally, the sukuk market hit $1t outstanding in 2024, up 11% year-on-year to $254.3b issuances. ESG sukuk has also soared past $50b, with $15.4b new deals in 2024 alone.

Saudi Arabia and the United Arab Emirates followed, whilst Indonesia and Pakistan closed out the top 5.

In total, Islamic banking now span 84 countries globally, with the report noting rapid expansion in sub-Saharan Africa’s 104 banks across 28 nations.