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Islamic Finance

Islamic finance sector growth to slow down to 5-10% globally


The global Islamic finance industry will continue to grow in 2026, but the momentum may ease as the effects of the Middle Eastern war continue to drain regional economies and industries.

The global Islamic finance industry growth is expected to slow down to about 5%-10% this year, following an expansion of 10.2% in 2025, S&P Global Ratings said on Monday. 

The Middle East war has significantly affected the economic growth outlook in some core Islamic finance countries, reducing sukuk issuance and growth opportunities for their banking systems, the rating agency said. 

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