The global Islamic fintech market continues to expand rapidly, reaching an estimated value of $198 billion in 2024/25 and projected to grow at a compound annual rate of 11.5 percent to reach $341 billion by 2029, according to the latest Global Islamic Fintech (GIFT) Report 2025/26. The report highlights sustained momentum across major markets and signals a maturing industry moving toward stronger execution and scalable innovation.
According to the GIFT Index, Saudi Arabia and Malaysia continue to hold the top two positions globally, reflecting their strong regulatory frameworks, supportive ecosystems and expanding Islamic fintech activity. The index assessed 64 countries using 19 indicators across five core categories: talent, regulation, infrastructure, Islamic fintech market and ecosystem, and capital, with greater weight assigned to market ecosystem performance.
The top Islamic fintech markets by transaction volume include Saudi Arabia, Iran, Malaysia, the United Arab Emirates, Indonesia, and Kuwait. Each recorded an estimated market size exceeding $3.1 billion in 2024/25. Collectively, the top 10 markets account for approximately 93 percent of the global Islamic fintech market, underscoring the concentration of activity in leading hubs.
Industry leaders note that the sector is transitioning from experimentation to execution, with clearer business models and practical innovation designed to meet real customer needs. Particular attention has been given to the digital assets segment, which is gaining traction as a Shariah-compliant tool to enhance payments, settlement processes and transparency. Despite this progress, key challenges remain, including access to capital, regulatory compliance requirements, consumer awareness, talent acquisition and the complexity of scaling across multiple jurisdictions.
The United Arab Emirates moved back into third place in this year’s index, reaffirming its position as a major regional center for Islamic fintech innovation. Meanwhile, Qatar ranked sixth globally, with its Islamic fintech market valued at $3.1 billion in 2024/25 and projected to grow at a 9 percent CAGR to reach $4.8 billion by 2029. Officials at the Qatar Financial Centre Authority stated that the country remains committed to strengthening its financial ecosystem in line with its broader strategic development plans.
The report concludes that collaboration among regulators, financial institutions, startups and investors will be essential to sustaining growth and unlocking the full potential of Islamic fintech. By working together, stakeholders can expand financial inclusion, enhance trust and build a more resilient Shariah-compliant financial system worldwide.