Standard Chartered has unveiled a comprehensive new report titled Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts, projecting global Islamic finance assets to surge to USD7.5 trillion by 2028, up from USD5.5 trillion in 2024. This projection underscores the growing significance of Shariah-compliant financial services worldwide.
According to the report, the Islamic finance industry exceeded USD5 trillion in global assets in 2024, marking a 12% increase from 2023 and a 43% jump since 2020. Islamic banking continues to dominate the sector, accounting for over 70% of total assets — expected to rise from USD4 trillion in 2024 to USD5.2 trillion by 2028. Meanwhile, the Sukuk market is set to grow from USD971 billion to USD1.5 trillion in the same period.
Bilal Parvaiz, CEO of Standard Chartered Saadiq Malaysia, noted Malaysia’s pivotal role:
“With Malaysia being one of the top five leaders in Islamic finance assets, which is projected to see a 36% increase by 2028, it is evident that Islamic banking is entering a new phase of growth defined by scale, sustainability and strategic integration.”
He added that the growth reflects strong market fundamentals and rising global appetite for ethical and inclusive financial systems, aligning with Malaysia’s leadership in advancing Islamic finance innovations through Value-Based Intermediation (VBI) — a framework aimed at delivering positive and sustainable impact.
The report also highlights insights from the 2025 Pulse of Islamic Banking client survey, exploring key growth drivers, regulatory dynamics, liquidity and risk management challenges, as well as innovation pathways and ESG integration. Real-world case studies and market spotlights further illustrate the sector’s evolution.
Standard Chartered Saadiq, the Islamic banking arm of Standard Chartered, continues to offer a full suite of Shariah-compliant solutions across Asia, Africa and the Middle East, catering to financial institutions, corporates, and retail clients.
The full report is available at: Standard Chartered – Islamic Banking Report