LONDON, United Kingdom, October 16, 2025/APO Group: The London Stock Exchange Group (LSEG), in collaboration with the Islamic Corporation for the Development of the Private Sector (ICD), has revealed the findings of the 2025 Islamic Finance Development Indicator (IFDI) report, viewed as a global benchmark assessing the development of the Islamic finance industry across 140 countries.
The global sukuk market has surpassed US$1 trillion in outstanding value during 2024 despite the persistent macroeconomic headwinds. On the other hand, the Total global sukuk issuance reached US$254.3 billion, up 11 percent year-on-year, while ESG Sukuk was in excess of the $50 billion in outstanding value, with US$15.4 billion in new issuances, marking the increasing integration of sustainability into Islamic finance.
According to the report, Islamic banking continues to dominate the sector with 72 percent of total industry assets, with the three largest markets such as Iran, Saudi Arabia, and Malaysia, collectively represent US$4.3 trillion while expanding its presence to 84 markets globally, encompassing growing momentum across the sub-Saharan Africa region, where 104 Islamic banks and windows now operate across 28 countries.
The report shows that Malaysia has maintained its top position in the global rankings, followed by Saudi Arabia and the United Arab Emirates, reflecting their continued investment and policy leadership in developing Islamic finance ecosystems. Among key takeaways, Governance recorded the highest average score globally, driven by robust regulatory frameworks and enhanced disclosure standards.
Head of Islamic Finance LSEG, Mustafa Adil, commented: “Looking ahead, the industry will be shaped by cross-border connectivity, regulatory advancements, and strategic national initiatives. Based on current trajectories, global Islamic finance assets are projected to reach US$9.7 trillion by 2029, growing at an average annual rate of 10 percent. This underscores Islamic finance’s vital role in supporting sustainable economic growth and financial inclusion globally.”
While the Acting Chief Executive Officer (ACEO) of ICD, Khalid Khalafalla, added, “The IFDI continues to serve as a vital benchmark for policymakers and market participants. It reflects the sustained efforts of governments and institutions to create an inclusive and resilient Islamic finance ecosystem, one that supports real economies and aligns with global development objectives. These goals are intrinsically linked to ICD’s mission to foster private sector development and advance Islamic finance across its member countries.”
The Islamic Finance Development Indicator (IFDI) is a composite weighted index that assesses the development of Islamic finance across five key areas: Financial Performance, Governance, Sustainability, Awareness, and Knowledge.
