Islamic Finance Assets Reach $6.5 Trillion: Key Findings from the ICD-LSEG Islamic Finance Development Report 2026

Global Islamic finance assets reached US$6.5 trillion in 2025, a 9% increase on the previous year, and are projected to exceed US$10.5 trillion by 2030. That is the headline of the ICD-LSEG Islamic Finance Development Report 2026, released in October 2026. Malaysia, Saudi Arabia, the UAE, Indonesia and Pakistan remain the most developed markets.

About the report

The Islamic Finance Development Report is published each year by LSEG (London Stock Exchange Group) with the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group. The 2026 edition was announced on 21 October 2026 at the Kuala Lumpur Islamic Finance Forum, according to TradeArabia. It covers data for the 2025 calendar year and is the most recent edition available.

At its core is the Islamic Finance Development Indicator (IFDI), which scores 140 countries on five pillars: financial performance, governance, knowledge, sustainability and awareness. The underlying database covers more than 2,000 Islamic financial institutions, including banks and takaful operators, along with sukuk, Islamic funds and Shariah scholars, LSEG says.

Key findings

• Total assets: Global Islamic finance assets reached US$6.5 trillion in 2025, up 9% year on year, according to the ICD-LSEG report.
• Long-term growth: The industry held about US$2.5 trillion in assets in 2018, so it has grown roughly two and a half times in seven years, Khaleej Times reported citing LSEG.
• 2030 projection: LSEG and ICD expect total assets to exceed US$10.5 trillion by 2030, about 61.5% above the 2025 level.
• Market leaders: Malaysia, Saudi Arabia, the UAE, Indonesia and Pakistan kept their positions as the most developed Islamic finance markets in the 2026 IFDI.
• Fastest movers: Türkiye, Tanzania, Kenya, Benin, Azerbaijan and Uzbekistan posted notable gains in their IFDI scores.
• Weak spot: The report finds that talent development is lagging behind industry growth and calls for stronger specialist education.

What drove growth in 2025?

The report attributes 2025 growth to four drivers: expansion in Islamic banking, record sukuk issuance, strong performance by Islamic funds and new regulatory frameworks in several markets. Banking remains the largest segment by assets, followed by sukuk, funds, other Islamic financial institutions and takaful.

Three themes stand out from the qualitative findings. Regulatory reform and new market infrastructure are spreading Islamic finance beyond its core markets, particularly in Africa and Central Asia. Sustainability guidelines are becoming a priority, but sustainable Islamic finance activity is still concentrated in the developed markets. And digital tools, including fintech, open banking and tokenised sukuk, are changing how financing is issued and settled.

Khalid Khalafalla, acting CEO of ICD, described Islamic finance as a “practical instrument for inclusive and sustainable economic transformation” in the launch announcement.

How does this compare with other 2026 forecasts?

The ICD-LSEG figure is backward-looking: it measures what happened in 2025. Forward-looking forecasts published earlier in the year are more cautious about 2026 itself. S&P Global Ratings expects industry growth to slow to between 5% and 10% in 2026, as we covered in our summary of its 2026-2027 outlook. Fitch Ratings reported that sukuk issuance in core markets fell 36% in the first half of 2026. Read together, the reports describe a strong 2025 followed by a slower, more uncertain 2026, with the long-term trend still pointing up.

Readers should also note that asset totals differ between publishers because each uses its own coverage and methodology. The ICD-LSEG figure of US$6.5 trillion should not be blended with estimates from other reports.

What this means for Islamic finance founders and professionals

Three practical points follow from the report.

• Look at the movers, not only the leaders. The big five markets are crowded and well served. The countries gaining ground, such as Kenya, Tanzania, Benin and Uzbekistan, are building regulation and infrastructure now, which is when early entrants have the most room.
• Talent is a business opportunity. If the industry is short of trained people, then training, certification and advisory services are a real market, especially in Africa and Central Asia where institutions are newer.
• Digital infrastructure is no longer optional. With tokenised sukuk and open banking named as growth channels, Islamic fintechs that serve issuers and banks, not only retail users, are positioned for the next phase.

Read the full report: The ICD-LSEG Islamic Finance Development Report 2026 is published by LSEG and ICD and is available from the LSEG Islamic finance page.

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