Global Islamic Finance to Grow to $5.9 Trillion by 2026

The global Islamic finance industry is poised to grow to $5.9 trillion in three years, an official with the Organization of Islamic Cooperation said.

Musa Kulaklikaya, the OIC’s assistant secretary general for administration and finance, made the remark in an address to the 6th International Conference on Islamic Finance.

Islamic finance academics, scholars, and practitioners from several countries gathered in Qatar’s capital, Doha, on the weekend, to attend the 6th International Conference on Islamic Finance, organized by the Center for Islamic Economics and Finance at the College of Islamic Studies of Hamad Bin Khalifa University in collaboration with Qatar Financial Centre.

Held under the theme “Advancing ethical and sustainable economy, Islamic finance solutions for environmental, social and economic challenges in the digital age,” the two-day conference underscores the importance of integrating emerging technologies with Islamic finance to devise innovative solutions to contemporary problems. The conference aims to provide a platform for scholars, researchers, and practitioners to engage in discussions about the latest developments and challenges in the field.

Speaking to Anadolu on the sideline of the conference, Recep Senturk, dean of Islamic Studies at Hamad Bin Khalifa University, said that this year’s concentration is on the ethical economy, sustainability, and digitalization adding, “These are all inter-related issues.”

“Digitalization is a global phenomenon. No one can ignore it. So, Islamic finance institutions also take into account digitalization. They also adapt their procedures to digitalization. And during this process of adaptation, the issue of Islamic values is important. Not deceiving people, not taking advantage of them, and giving full information, being transparent these issues must be taken into account during this digitalization process. So here in this conference, we brought together academics, scholars, and also practitioners from the banks so they will make consultations and at the end of the meeting, there will be some declaration about some practical decisions in these areas,” he said.

“In this conference, we would like to draw attention to the importance of economic sustainability under the guidance of the ethical values of Islam so that we have sustainability of humanity and sustainability of human civilization,” Senturk added.

Referring to the issues that demand urgent attention in the world, Qatar Financial Centre Deputy CEO Nasser Al-Taweel said that in these critical times, Islamic finance can be a compelling tool for addressing the issues.

In his keynote address at the conference, he said, “Islamic finance principles are inherently aligned with sustainable and equitable financial practices.”

Giving details about the rapid expansion of the Islamic finance sector, Musa Kulaklikaya, said, “According to the latest statistics, the Islamic finance industry reached almost $4 trillion in total assets in 2021. Projections indicate that the global Islamic finance industry is poised to grow to $5.9 trillion by 2026.”

Islamic finance institutions must prioritize ethical investments and projects aligned with Islamic principles, said Kulaklikaya in his keynote address and added, “These investments may span clean energy, affordable housing, healthcare, and education.

​​​​​​​By directing resources toward socially responsible initiatives, Islamic finance can champion sustainable development and address critical societal and environmental challenges.”

The conference will cover a wide array of topics, ranging from the role of Islamic finance in tackling environmental challenges to the impact of emerging technologies on the field.