Global Islamic finance assets to hit $10.5tn by 2030, Bangladesh lags

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Update Time : Monday, October 26, 2026
12 Time

Growth in Bangladesh’s Islamic banking assets slowed to three per cent amid a crisis of confidence linked to alleged financial misconduct, governance failures and liquidity pressures, even as global Islamic finance assets are projected to reach $10.5 trillion by 2030.

The country faces additional risks from higher inflation, energy costs and foreign-exchange pressures, according to the 2026 Islamic Finance Development Report issued by the Islamic Corporation for the Development of the Private Sector and the London Stock Exchange Group, reports Arab News.

Bangladesh’s authorities have merged five banks into Sammilito Islami Bank to address balance-sheet stress in the sector.

Globally, Islamic finance assets are forecast to increase by 61.5 per cent from $6.5 trillion in 2025 to $10.5 trillion in 2030, with average annual growth of nine per cent over the period, the report said.

The expansion is expected to be driven by the continued growth of Islamic banking, increased sukuk issuance and wider adoption of Islamic finance in emerging markets.

Global Islamic banking assets grew by eight per cent in 2025, with the sector operating in 84 countries. Ghana is developing a framework for non-interest banking, while Uzbekistan has introduced legislation to support Islamic banking.

The report also highlighted differences in the resilience of Islamic banking markets. Banks in the Gulf Cooperation Council countries remained resilient amid regional conflict, supported by strong capitalisation, asset quality and sovereign backing.

In Malaysia and Indonesia, the impact of regional tensions is expected to be ‘manageable due to the largely domestic focus of their banking sectors.’

Bangladesh and Pakistan, however, face additional risks from inflation, rising energy costs and foreign-exchange pressures, it said.

Malaysia topped the Islamic Finance Development Indicator with a score of 136, followed by Saudi Arabia with 113 and the United Arab Emirates with 95. Indonesia and Pakistan ranked fourth and fifth, respectively.

The global IFDI score rose to 12 in 2026 from 11 in 2025, reflecting improved performance across the industry. The report said ‘stronger performances across the industry, with 71 per cent of countries covered by the IFDI recording higher scores,’ contributed to the increase.

African sovereign sukuk issuance reached $4.5 billion in 2025, up from $1.7 billion in 2021.

Benin’s debut $500 million sukuk attracted orders exceeding $7 billion, demonstrating strong investor demand for Islamic financial instruments.