Saudi Arabia and Kuwait continue to lead the Gulf region in Islamic finance, with Sharia-compliant institutions holding 76% and 51% of total banking assets in their respective domestic markets, according to data from S&P Global Ratings.
The overwhelming dominance of Islamic financial institutions in Saudi Arabia—comprising over three-quarters of the country’s total banking sector—reflects a deeply embedded regulatory framework, strong public preference for Sharia-compliant products, and massive state-backed project financing aligned with Vision 2030 initiatives.
Meanwhile, Kuwait’s majority market share demonstrates a highly mature dual-banking environment where major Islamic institutions compete effectively alongside conventional banks. Together, these figures underscore the central role the two nations play in driving liquidity, asset growth, and product innovation across the broader Islamic finance ecosystem in the Middle East.
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