Global Islamic finance projected to reach $9.6 trillion by 2030
Global Islamic financial assets are projected to reach $9.6 trillion by 2030, driven by expanding trade and investment corridors between ASEAN, the Gulf and Africa. Malaysia currently accounts for 37 percent of global outstanding sukuk.
Corridors of capital across Asia and the Gulf
The global Islamic finance sector spans over 2,200 institutions with assets totaling $6 trillion, on track to reach $9.6 trillion by 2030.
Rapidly expanding corridors connecting ASEAN, the Gulf Cooperation Council, South Asia and Africa are reshaping capital flows, supported by a $2.2 trillion halal economy.
Cross-border trade cooperation and free trade agreements are set to drive 30 percent of GCC-ASEAN trade growth.
Malaysia holds approximately 37 percent of global outstanding sukuk, while Islamic financing represents nearly half of its domestic banking system.
Investor demand was highlighted by Malaysia's recent $1.5 billion Global Sukuk issuance, which drew $9.5 billion in orders.
From benchmark rates to interbank liquidity
Market infrastructure is shifting toward greater transparency through MYOR-i, the first transaction-based Islamic benchmark rate, scheduled for mandatory adoption by July 1, 2027.
Transaction volume in the domestic unsecured interbank market exceeded RM 1 trillion in 2025, having more than doubled over five years.
Malaysia's Islamic fund management assets under management stand above RM 278 billion, while local retakaful operators expanded their ASEAN market share to 22 percent.
Ecosystem strength alone is not enough
Islamic capital expansion remains heavily concentrated and barely reaches severe infrastructure needs across South Asia and Africa. Standardizing benchmarks like MYOR-i resolves domestic pricing, yet cross-border hedging tools remain scarce.
Broader regional risk-sharing mechanisms are essential to realize this growth potential.