LONDON, United Kingdom, October 16, 2025 — The London Stock Exchange Group (LSEG), in partnership with the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank (IsDB) Group, has unveiled the findings of the Islamic Finance Development Indicator Report 2025, a benchmark study assessing the advancement of the Islamic finance industry across 140 countries.
The latest edition of the Islamic Finance Development Indicator Report 2025 underscores the sector’s continued resilience, transparency, and global relevance.
The research highlights the growing sophistication of Islamic financial systems, which are expected to propel global Islamic finance assets to US$9.7 trillion by 2029, growing at an average annual rate of 10%.
Malaysia, Saudi Arabia, and UAE Lead the Global Islamic Finance Rankings
According to the Islamic Finance Development Indicator Report 2025, Malaysia has maintained its top global position, followed by Saudi Arabia and the United Arab Emirates, reinforcing their long-term policy leadership and investment in Islamic finance ecosystems.
Other leading markets include Indonesia, Pakistan, Kuwait, Bahrain, Iran, Qatar, Türkiye, and Bangladesh—each contributing to a robust and diversified global Islamic finance landscape.
The report noted that governance achieved the highest average global score, driven by enhanced regulatory frameworks, improved disclosure standards, and greater alignment with international sustainability practices.
LSEG and ICD Stress the Role of Islamic Finance in Sustainable Growth
Mustafa Adil, Head of Islamic Finance at LSEG, commented on the findings, emphasizing the growing importance of cross-border connectivity, regulatory progress, and national strategies in shaping the sector’s future.
“Looking ahead, the industry will be shaped by connectivity and innovation.
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%.
This demonstrates the crucial role of Islamic finance in advancing sustainable economic growth and financial inclusion worldwide,” said Adil.
Khalid Khalafalla, Acting CEO of ICD, reaffirmed the organization’s commitment to building a more inclusive financial ecosystem.
“The Islamic Finance Development Indicator Report 2025 serves as a trusted benchmark for policymakers and market participants.
It reflects the dedication of governments and financial institutions to foster resilience and inclusivity within Islamic finance—values that align directly with ICD’s mission to strengthen private sector development across member countries,” Khalafalla stated.
Sukuk Market and ESG Integration Drive Sectoral Expansion
The Islamic Finance Development Indicator Report 2025 also notes significant progress in the sukuk (Islamic bonds) market, which surpassed US$1 trillion in outstanding value by the end of 2024. Global sukuk issuance grew 11% year-on-year, reaching US$254.3 billion.
Meanwhile, ESG-linked sukuk exceeded US$50 billion in outstanding value, with US$15.4 billion in new issuances, reflecting the rapid adoption of sustainability principles across Islamic finance instruments.
The report further highlighted the dominance of Islamic banking, which represents 72% of total industry assets and now spans 84 markets globally, including growing operations in Sub-Saharan Africa, where 104 Islamic banks and windows operate in 28 countries.
IFDI Framework: A Comprehensive Measure of Islamic Finance Progress
The Islamic Finance Development Indicator (IFDI)—central to the Islamic Finance Development Indicator Report 2025—is a composite weighted index assessing five key dimensions: Financial Performance, Governance, Sustainability, Awareness, and Knowledge.
This multidimensional approach provides a holistic assessment of the global Islamic finance landscape, helping regulators, investors, and policymakers identify emerging opportunities for growth and reform.
About LSEG
The London Stock Exchange Group (LSEG) is a leading global financial markets infrastructure and data provider.
Through its open-access platforms, trusted data services, and deep market expertise, LSEG plays a vital role in ensuring transparency, efficiency, and sustainability across global capital markets.
Headquartered in the UK, LSEG operates in over 65 countries and employs more than 26,000 professionals worldwide.
About ICD
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral development financial institution and a member of the Islamic Development Bank (IsDB) Group.
Established in 1999 with an authorized capital of $4 billion, ICD promotes private sector growth, fosters entrepreneurship, and supports Islamic finance innovation across its 61 member countries.
For more information, visit: https://ICD-PS.org
Contact Information
Tarek Fleihan
Global Communications, LSEG
📧 [email protected]
Nabil El-Alami
Comm. & Corporate Marketing Division, ICD
📧 [email protected]
SOURCE:
Islamic Corporation for the Development of the Private Sector (ICD)
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