The global Islamic finance market will grow from US$5.10 trillion in 2026 to US$8.46 trillion by 2031, a compound annual growth rate of 10.70%, according to a forecast by research firm Mordor Intelligence. Islamic banking held 70.58% of the market in 2025, and takaful is the fastest-growing segment, forecast to grow 12.80% a year.
About the report
Mordor Intelligence is a commercial market research firm. Its Global Islamic Finance Market report estimates market size in 2025 and 2026 and forecasts to 2031, broken down by sector, customer type and region. The full report is paid; the figures below come from its public summary.
Key findings
| Market size 2025 | US$4.53 trillion |
| Market size 2026 | US$5.10 trillion |
| Forecast 2031 | US$8.46 trillion |
| Growth rate 2026 to 2031 | 10.70% a year |
| Islamic banking share (2025) | 70.58% |
| Takaful growth to 2031 | 12.80% a year, fastest of all segments |
| Corporate and institutional share (2025) | 58.13%, with retail growing faster |
| Largest and fastest-growing region | Middle East and Africa |
How does this compare with other estimates?
Mordor’s figures are lower than those of the industry’s most cited dataset. The ICD-LSEG Islamic Finance Development Report 2026 puts total Islamic finance assets at US$6.5 trillion for 2025, against Mordor’s US$4.53 trillion, and forecasts more than US$10.5 trillion by 2030. The SGIE Report 2025/26 projects US$9.72 trillion by 2029.
The gap comes from different definitions and data sources. ICD-LSEG builds its figures from the disclosed balance sheets of more than 2,000 institutions; commercial research firms use their own models. All three agree on the direction, double-digit growth led by banking, and on the leading regions. Readers should quote each figure with its source and not mix them.
What drives the growth?
- Banking: Islamic banks hold more than 70% of industry assets. In the GCC, Malaysia, Bangladesh, Pakistan and Jordan, they hold more than 15% of domestic banking assets, which the IFSB treats as systemically important.
- Sukuk: the second-largest segment, increasingly including green and sustainability sukuk. See our ESG sukuk summary.
- National strategies: the UAE, for example, targets AED 2.56 trillion in local Islamic finance assets by 2031.
- Digital channels: app-based Islamic banking and investment platforms are widening retail access.
What this means for readers
The forecast’s most useful signal is takaful. At 12.8% a year, it is expected to outgrow banking, yet takaful remains a small and underdeveloped segment in most markets. For founders and investors, insurance distribution, digital takaful and retakaful are areas with room to grow. Our guide to takaful explains how the model works.
Read the report: the summary is available from Mordor Intelligence.
FAQ
Mordor Intelligence forecasts USD 8.46 trillion by 2031.
Publishers use different definitions, data sources and models. ICD-LSEG uses institutions’ disclosed financials; market research firms use their own estimates.
Takaful, forecast by Mordor Intelligence to grow 12.80% a year to 2031.
