A new report has revealed that Saudi Arabia, Indonesia, Malaysia, and the UAE collectively account for more than half of the global Islamic fintech firms, with 248 companies based in these four nations. The Global Islamic Fintech Report (GIFT) 2024/25, co-produced by DinarStandard and Elipses, highlights these countries as the dominant players in the sector.
The top ten countries, including Qatar, the United States, Pakistan, Singapore, and Egypt, house 79% of the global Islamic fintech enterprises. Saudi Arabia, Iran, Malaysia, the UAE, Indonesia, and Turkey also dominate in terms of transaction volumes, accounting for 83% of the global Islamic fintech market.
The global Islamic fintech market was valued at $161 billion in 2023/24 and is projected to grow to $306 billion by 2028, with a compound annual growth rate (CAGR) of 13.6%. While Islamic fintech currently represents just 1.4% of the global fintech market, its growth rate outpaces the traditional fintech sector, which has a CAGR of 11%.
The report notes that Saudi Arabia has emerged as the dominant hub for Islamic fintech, surpassing Malaysia for the first time. Other GCC countries, including the UAE, Qatar, Kuwait, and Bahrain, are also contributing to the region’s increasing prominence.
Despite rapid growth, challenges persist, particularly with access to capital, regulatory compliance, customer education, and geographic expansion. Addressing these obstacles will be critical for the future growth of the Islamic fintech sector, which continues to move from a niche market to a mainstream segment of Islamic finance.
The GIFT Index for 2024/25 ranked Saudi Arabia, Malaysia, Indonesia, the UAE, and the UK as the top five ecosystems conducive to Islamic fintech, based on indicators like talent, regulation, infrastructure, and capital. Countries like Bahrain, Pakistan, Qatar, and Turkey are also emerging as strong ecosystems for the sector.
