Where Islamic Fintech Grows Next

Over the last decade, Fintech has moved into the mainstream of financial services and consumer behavior. The Fintech market revenue is projected to grow fivefold to $1.5 trillion by 2030, with growth driven in part by digital access expanding faster than traditional offerings.  Islamic Fintech is emerging along with this broader momentum, to address the increasing demand for Shariah compliant and ethical products. The global Islamic Fintech market 198 billion in 2024/25 and is projected to reach USD 341 billion by 2029, growing at 11.5% per year. Yet it still represents a small share of global Fintech activity. That gap highlights where the next phase of Islamic Fintech growth is likely to come from.

In any conversation related to technology, it’s difficult to escape the ‘AI’ hyperbole and the lofty expectations set by marketers. But practically speaking, AI does provide a golden opportunity to build and iterate quickly and address structural issues. Operational scaling has long been a challenge in Islamic finance. Due to bespoke products, manual Shariah reviews, lack of data and high compliance costs.  AI, if used responsibly, can address many of these issues, from supporting alternative credit scoring for underserved SMEs, automating Shariah monitoring, and improving risk management. The value is simple, AI can offer lower cost, faster decisions, and wider access, while preserving ethical considerations.

While Bitcoin and cryptocurrencies have had a characteristically frenetic 2025, the enterprise use of the underlying blockchain technology and real-world asset tokenisation continues to mature. Global financial giants such as Blackrock and JP Morgan are investing heavily, spurred on by regulatory tailwinds from the U.S. Islamic finance relies on clear ownership, asset-backing, and trust. Blockchain fits naturally here. Sukuk, commodities or receivables can be issued and managed more efficiently through distributed ledgers. This reduces cost, improves settlement, and democratises access for smaller investors. Progress has continued through 2025, Fasset, the Islamic Finance Super App, is utilising blockchain to offer fractional tokenised equities, blockchain-payments, and develop the first ‘stablecoin-based Shariah compliant’ banking model, following the securing of a provisional banking license. In parallel, firms such as Blade Labs are exploring ways blockchain can be used to improve efficiency, transparency, and auditability in Islamic finance contracts.

Many Islamic financial products sit outside daily economic flows. Users must seek them out. That makes distribution expensive and slow.  Embedded finance changes this.  Shariah compliant BNPL or micro-takaful could sit inside e-commerce platforms, mobile apps and digital transaction flows.  According to a report by Dealroom and ABN AMRO Ventures, the global embedded finance market value is expected to reach $7.2 trillion by 2030. There is a clear opportunity to provide accessible Islamic financial services, to address the growing shift to integrated financial services.

Across successive Global Islamic Fintech Reports, access to capital and navigating regulatory requirements is consistently highlighted as the main hurdles by Islamic Fintech founders. One practical option to address both constraints is to focus on Business-to-Business (B2B) or Business-to-Business-to-Consumer (B2B2C) models. BCG expect these markets to grow by over $700 billion in annual revenues by 2030. Banks are increasingly cultivating innovation through investments, acquisitions, and partnerships, in order to stay relevant. Traditional Islamic banks already have capital, the regulatory permissions, and customer distribution in place. Fintechs are nimble, they can build new products and deploy far faster than banks typically can internally. In an increasingly digital and innovation driven environment, where capital and regulatory access is still paramount, strategic partnership delivers meaningful value for incumbents and Fintechs alike. 

Over the last couple of years, the Middle East and North Africa (MENA) region has moved towards the center of the global Fintech market. Today, the region is home to more than 1,000 Fintech companies, with multiple unicorns and growing capital inflows. A young, mobile-first population, strong government backing, and investment in digital infrastructure have helped Fintechs to scale quickly across payments, lending, and digital banking. Qatar continues to push ahead in Fintech and offers a supportive environment ideal for innovation. This momentum is reflected in investment activity: in 2024, Fintech accounted for a significant share of Qatar’s venture funding, with over 500% year-on-year growth. Qatar Financial Centre (QFC) plays a central role in shaping this ecosystem. Through its Fintech friendly framework, QFC offers company incorporation with 100% foreign ownership, fast licensing, and a common-law environment familiar to international founders.

QFC also works closely with Qatar Central Bank, Qatar Fintech Hub, and Qatar Development Bank, giving founders access to coordinated pathways that combine sandboxes, pilots, funding support, grants and partnerships. Qatar offers practical conditions for building new financial products. The digitally engaged population, a leading Islamic finance sector and dedicated Fintech support programs provide a space for innovation, particularly for Islamic Fintech use cases, to test and scale.

Islamic Fintech is poised to enter the next phase of growth. Emerging technologies such as AI, blockchain, and open banking will enable new products and lower barriers to entry. As supportive regulatory frameworks and ecosystem support matures, more players are likely to enter the market. This will intensify competition, but also create opportunities for partnership, collaboration, and selective consolidation. Over time, these trends should lead to stronger products and wider access to Shariah compliant financial services.