The newly released 2024–2025 State of the Global Islamic Economy (SGIE) Report reveals that Islamic finance is rapidly emerging as a major force worldwide. According to the report unveiled in Jakarta, the global Islamic economy grew by 5.5%, driven by strong interest in Sharia-compliant products and services. Islamic finance assets have already hit $5.5 trillion in 2024 and are projected to soar to $7.5 trillion by 2028. Once seen as a niche segment, Islamic finance now stands as a pillar of ethical and sustainable finance, appealing to both Muslim and non-Muslim consumers looking for transparent and value-based financial solutions.

Much of this growth is concentrated in the Middle East and Africa, with countries like Saudi Arabia, the UAE, and Malaysia leading the charge thanks to robust regulatory support and established Islamic banking networks. Indonesia has also strengthened its position, consistently ranking high in global Islamic economy indicators. Despite a recent slowdown in sukuk (Islamic bonds) issuance in some markets, the Gulf states have maintained strong momentum, especially through innovative funding strategies such as short-term treasury sukuks in the UAE.

A key driver behind this expansion is the rise of ethical consumerism, spurred by geopolitical tensions and growing global demand for responsible financial practices. For example, new brands catering to halal and ethical preferences have seen significant export growth. In the UK and other Western markets, more consumers are turning to Sharia-compliant financial products, even as misconceptions about Islamic finance persist.

Meanwhile, successful initiatives such as Ayan Capital's expansion in halal car finance illustrate growing adoption outside Muslim-majority regions.

Looking ahead, the report projects Islamic finance assets could reach $12.5 trillion by 2033, underpinned by technological innovation, a rising Muslim population, and greater financial inclusion. New tools like blockchain and Sharia-compliant fintech solutions are set to further transform the sector. While challenges such as governance issues and market fluctuations remain, Islamic finance’s focus on risk-sharing and ethical principles positions it as a resilient and attractive alternative for global investors.