The East Asia and the Pacific region accounts for 21.9% of the global Islamic finance market, an industry projected to hit $9.7 trillion in assets by 2029. According to data from the London Stock Exchange Group and the Islamic Corporation for the Development of the Private Sector (LSEG-ICD), global Sharia-compliant assets are expected to maintain a steady 10% annual growth rate over this period. While the Gulf Cooperation Council (GCC) remains the largest regional stakeholder with a 53.1% market share, the steady expansion highlights the long-term upward trajectory of Islamic finance worldwide.
This positive outlook follows strong performance in 2024, when the industry’s total assets grew 14.9% year-on-year to reach $3.9 trillion. This expansion was primarily anchored by the Islamic banking sector, which grew by 17.1% and continues to dominate the market with a 71.6% asset share. Sukuk (Islamic bonds) represent the second-largest segment at 23.3%. Malaysia remains a core driver of this growth, ranking alongside Iran and Saudi Arabia as one of the world’s three largest Islamic finance markets. Together, these three nations control 72% ($4.3 trillion) of total assets within the LSEG-ICD framework. Individually, Malaysia holds a 12% share of global Sharia-compliant assets—the highest outside the Middle East—while Indonesia and Pakistan each hold a 2% share.
The Asia-Pacific region also remains a central player in the Islamic fixed-income space. Malaysia leads globally in cumulative sukuk issuance via both local ringgit and US dollar programs. In 2024, Malaysia and Indonesia led non-Arabic sovereign issuances, contributing significantly to the $205 billion in global sukuk issued that year. This activity brought total outstanding global sukuk to $902.8 billion, while outstanding Environment, Social, and Governance (ESG) sukuk surpassed $50 billion following $15.4 billion in new listings. Beyond traditional capital markets, the APAC region serves as a major digital hub, with ten countries—including Malaysia and Indonesia—hosting 80% of the world’s 484 Islamic fintech firms. This fintech sector generated $198 billion in transaction volume over the 2024/25 period and is forecast to reach $341 billion by 2029.
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