Global Islamic Finance Industry Reaches Record Valuation of $5.98 Trillion in 2024
The global Islamic finance industry has achieved a record valuation of $5.98 trillion in 2024, showcasing an impressive 21% growth in just one year. While historical markets in Asia and the Gulf continue to dominate, the 2025 report highlights unprecedented expansion on the African continent, marked by the arrival of new countries in the ranking and major regulatory reforms.
2025 Report: New Entrants and Regulatory Reforms
The 2025 report, which now assesses 140 countries, has welcomed four new global entrants, including two African nations: South Sudan and Lesotho. Although these countries still display modest scores, their inclusion testifies to the growing interest in ethical financial solutions across the continent.
In fact, several African countries stand out for their significant improvement in ranking or strategic milestones:
- Djibouti (37th globally): The country has recorded an improvement in its scores, particularly in the areas of awareness and financial performance.
- Uganda: Cited as one of the jurisdictions that has made the most progress in regulation, Uganda now hosts two full-fledged Islamic banks. Its insurance regulatory authority has also published guidelines on Takaful in 2024.
- Egypt: The country has climbed the governance ranking thanks to the strengthening of its regulatory framework. Egypt has officially recognized Takaful insurance contracts in its new insurance law introduced in 2024.
- Nigeria: Although ranked 15th globally in 2024 with a score of 28, Nigeria continues to innovate. In 2025, its Central Bank introduced three new liquidity instruments for non-interest financial institutions.
Sub-Saharan Africa's Momentum
The Islamic banking sector is experiencing particular traction in Sub-Saharan Africa. In 2024, the region had 104 Islamic banks and windows spread across 28 countries.
- Expansion of windows: Conventional banking groups have launched Islamic windows in new niches, such as in Benin and Togo via Coris Bank Baraka.
- Kenya: In April 2025, the National Treasury began forming a central Shariah council to guide investors and support the issuance of Sukuk. The country has also seen the listing of its first Sukuk (Linzi Finco Trust Islamic) in April 2024.
- Ethiopia: The Capital Market Authority has commissioned a roadmap study to integrate an Islamic capital market, considered a strategic imperative for the country's financial inclusion.
- Eswatini: The Central Bank announced in 2024 its intention to attract more Islamic banks to diversify its financial landscape.
Regulatory Reforms and Sukuk
The year 2025 has been marked by intense legislative activity on the continent:
- Algeria: Publication of the Law on Sovereign Sukuk in June 2025, allowing various structures such as Ijara, Musharaka, and Wakala.
- Somalia: The president signed new laws in May 2025, including a law on Takaful, aiming to expand the offer of financial services.
- Tanzania: The country continues to develop its Islamic financial system with the issuance of additional Sukuk, which has boosted its financial performance indicators.
Regarding Tunisia, it stands out in the 2025 report for its solid performance in the knowledge indicator, which assesses education and research in Islamic finance, although it is not among the top-ranked nations globally.
