What are the key trends dominating the global Islamic fintech space?

The Global Islamic Fintech Report 2025/26 identified 30 notable Islamic fintech companies for 2026, recognized for their pioneering efforts across the $198 billion global fintech industry. 

The companies were selected based on several criteria, including funds raised, innovation in solutions development, market expansion, product diversification, and demonstrated growth (e.g., diversified product offerings and user growth). 

Abdul Haseeb, co-founder and principal at Elipses: “The Notable 30 Islamic Fintech companies are recognised for their contribution to advancing the sector over the past year. They are also an indicator of which geographies and sectors are trending. We expect these companies to be the leaders in a growing sector, continuing to drive innovation.”

Several key highlights and trends have emerged from the 30 Islamic fintech analysis. These are as follows: 

UAE is at the forefront of Islamic fintech growth

Ten out of the 30 notable Islamic fintech companies are based in the UAE, highlighting the country’s strong commitment to building leadership in Islamic fintech. 

Notable mega funding rounds include Tabby ($160 million), Mal ($230 million), and Alaan ($48 million). Advanced regulatory frameworks around open finance, crypto, and real-world assets (RWA) are further strengthening the ecosystem.

The UAE also benefits from a strong talent pool, supported by deep funding pockets and robust regulation from state institutions such as the UAE Central Bank, DFSA, and ADGM. In the Global Islamic Fintech Index, the UAE ecosystem rose by one position to rank 3, overtaking Indonesia.

”What we are seeing in the UAE is an ecosystem shifting from ‘fintech hub’ to ‘institution-grade infrastructure’, where progressive rulebooks, capital depth, and execution capacity combine to make innovation scalable," said Najmul Haque Kawsar, senior consultant and project manager at DinarStandard.

"As the industry converges on stablecoins and CBDCs for settlement, tokenisation for real assets, and Shariah governance as an operating system rather than a badge, the UAE’s moves, such as tokenisation sandboxes, its CARF commitment, and the Central Bank’s Digital Dirham programme, signal a clear intent to lead the next chapter of Shariah-aligned digital finance.”

Fintech is accelerating Pakistan’s financial inclusion

Pakistan has emerged as a growing Islamic fintech ecosystem, with three out of the 30 notable companies originating from the country. 

The GIFT Country Index also shows Pakistan rising by two positions to rank 8.

Although financial infrastructure is still developing, the ecosystem shows strong potential in driving financial inclusion for SMEs and underserved markets. Abhi has served more than 750,000 employees through earned wage access and, in 2025, secured $25 million in Series B funding and expanded into Saudi Arabia. Haball has served over 8,000 SMEs, processing more than $5 billion in payments and $110 million in financing, and last year secured a $52 million funding round.

Digital assets are galvanizing institutional investment momentum

Major developments signal rising integration of  digital assets into the Islamic finance landscape. Examples include Rain’s $250 million Series C at a $1.95 billion valuation, CoinMENA’s acquisition valued at up to $240 million, Fasset’s stablecoin initiatives, and Ruya Bank launching Shariah-compliant Bitcoin trading.

Robust regulation - particularly in the UAE and Bahrain - is attracting innovation and accelerating the development of Shariah-compliant digital asset ecosystems.

Values-based investing is at a tipping point

With growing customer expectations around values-aligned investing, several Islamic investment startups are moving beyond basic Shariah compliance. Notable highlight is Wahed, which pioneered Shariah-compliant UCITS ETFs with additional value-based screening, including considerations around human rights and social justice, signaling a broader shift toward ethical investing within Islamic finance.

To view the entire 30 notable fintech list, click here. 

To download our Global Islamic Fintech Report 2025/26, click here.