Islamic finance is playing an increasingly pivotal role in driving cross-border trade finance and investment flows across ASEAN, South Asia, Africa, and the Gulf Cooperation Council (GCC). Operating across nearly 100 jurisdictions with approximately $6 trillion in deployable assets, Shariah-compliant capital has emerged as a key enabler of global economic connectivity, according to a report by Standard Chartered.

Despite its global scale, a pronounced imbalance remains in the distribution of Islamic capital. Only 6% of global sukuk issuance currently reaches South Asia and Africa, highlighting a major growth opportunity for international financial institutions. Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered, emphasized that institutions must integrate Islamic finance into their core strategic agendas as its influence over international trade, treasury, and capital flows expands.

The shift is further supported by evolving global trade corridors. Channels centered around the GCC, China, and the Middle East-Türkiye axis are rapidly becoming critical routes for trade, investment, and working capital solutions, enhancing overall resilience across international payment and settlement networks.

Additionally, private credit is gaining traction as an alternative mechanism for deploying Shariah-compliant capital. Standard Chartered noted that Islamic asset-backed structures and governance frameworks are particularly well-suited to support investments across infrastructure development, trade receivables, and mid-market business financing.

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