Islamic fintech growth & investment opportunities

Islamic fintech entities across the world can be classified into four categories - leaders, emerging, maturing and dormant, according to a report. 

The Global Islamic Fintech Report 2024-25 classifies wealth management, deposits & lending and digital assets sectors under leaders, for exhibiting robust growth dynamics, which position them as attractive, accessible opportunities for investors.

Emerging include social finance and capital markets, with these domains maintaining a growth trajectory. Despite a comparatively reduced number of participants relative to leading sectors, they are anticipated to experience substantial volume expansion in the forthcoming period.

Sectors such as alternative finance, payments and fund raising are clubbed under maturing, which anticipate a decline in the influx of new entrants, but represent prime candidates for consolidation or diversification within the industry, suggesting strategic opportunities for stakeholders.

Dormant domains include back office, business intelligence, and insurance, exhibiting both low activity and modest growth, signaling their early development stage within the industry.