Islamic finance is becoming fundamental, not fringe and has risen from a niche to necessity.
Islamic finance is no longer a regional curiosity; it is becoming part of the structural foundation of global financial systems.
Once confined to a handful of markets and perceived as serving a niche clientele, Islamic banking was often seen as parallel to, rather than integrated with, the global financial mainstream. This shift reflects a growing recognition of its ethical foundations, structural resilience, and alignment with evolving global economic priorities.
Standard Chartered’s latest report, Islamic Banking for Financial Institutions: Unlocking Growth Amidst Global Shifts, reveals that global Islamic finance assets are on track to surpass $7.5 trillion (QAR 27.24 trillion) by 2028, up from $5.5 trillion (almost QAR 20 trillion) in 2024. This represents an impressive 36% asset growth over the next four years, signalling that Islamic banking is becoming a key pillar of the international financial system.
Rising financial volatility, growing calls for sustainability, and demand for inclusive, ethical finance have brought Islamic banking into sharper global focus. Its emphasis on asset-backed transactions, equitable risk sharing, and financial integrity provides a compelling value proposition in times of uncertainty.
These values are resonating more than ever with governments, corporates, and investors seeking resilient and inclusive financial frameworks.
Islamic banking now accounts for over 70% of total Islamic finance assets and is set to grow from $4 trillion (QAR 14.5 trillion) in 2024 to $5.2 trillion (QAR 18.9 trillion) by 2028. Meanwhile, the Sukuk market, a vital liquidity tool for governments and institutions, is projected to reach nearly USD 1.5 trillion. These numbers highlight shifting preferences, deeper institutional integration, and rising global demand for sustainable finance.
This shift also reflects a broader change in mindset. Islamic finance is no longer seen as “alternative finance,” but as strategic finance, a model that can integrate into the portfolios of global asset managers and the frameworks of sovereign wealth funds.
At Standard Chartered, we view this moment as a call to action. As the only international bank with a global Islamic banking franchise, Standard Chartered Saadiq, we are uniquely positioned to partner with financial institutions, corporates, and clients across more than 25 markets, from Malaysia and the UAE to the UK and Africa.
From helping institutions meet liquidity requirements to supporting green Sukuk issuances, we are enabling the next chapter of growth in Islamic finance, backed with Shariah-compliant products and bolstered by Shariah expertise.
Yet, with opportunity comes responsibility. The next phase of growth in Islamic banking will depend on how well the industry addresses existing challenges. Regulatory harmonisation across jurisdictions, improved liquidity management mechanisms, and a renewed focus on product innovation are all essential.
Standard Chartered’s report explores these issues in depth, while also highlighting pathways for digital transformation and greater institutional alignment with ESG principles.
The journey of Islamic banking reflects growing relevance. As the world becomes more focused on resilience, sustainability, and inclusive prosperity, Islamic finance offers a model that speaks to both values and performance.
The work ahead lies in deepening collaboration, improving consistency across markets, and continuing to innovate in ways that serve real economic needs – but more than anything, it deserves bold leadership to deliver Islamic Finance to the world.
At Standard Chartered, we are prepared to do that and see this as an opportunity and a responsibility to support our clients, strengthen communities, and help shape a more balanced and purpose-driven financial future.
Muhannad Mukahall is the Chief Executive Officer, and Head of Corporate and Investment Banking at Standard Chartered in Qatar.
This article is an opinion piece and does not necessarily reflect the views of Doha News, its editorial board, or staff.
