Prime Highlights
- Saudi Arabia, UAE and Malaysia are emerging as global leaders in Islamic fintech, supported by strong regulation, infrastructure and innovation.
- The sector is expanding rapidly as demand for Shariah-compliant digital financial services grows across global markets.
Key Facts
- Islamic fintech transactions are expected to grow from $198 billion in 2024/25 to $341 billion by 2029.
- The industry is projected to expand at an annual rate of 11.5 percent, slightly higher than the broader fintech sector.
Background:
Saudi Arabia, the UAE and Malaysia are leading the global Islamic fintech sector as transaction volumes are projected to reach $341 billion by 2029, according to the Global Islamic Fintech Report 2025/26.
The report, published by DinarStandard and Elipses, ranks the three countries among the most supportive ecosystems worldwide under the Global Islamic Fintech Index. The index ranks countries based on their regulation, infrastructure, talent, access to funding and overall market strength.
Islamic fintech transactions reached about $198 billion in 2024/25 and are projected to grow by 11.5 percent annually through 2029. This is slightly higher than the wider fintech industry, which is expected to grow at around 11 percent per year during the same period.
GCC countries are stepping up efforts to make the region a global hub for Shariah-compliant digital financial services. Experts say demand for ethical and Islamic financial products is rising as more people gain access to digital services.
The sector now includes 484 Islamic fintech companies worldwide, with 30 recognised for their innovation, funding activity and international expansion.
Saudi Arabia has introduced national systems to support regulated real estate tokenization and digital ownership transfers, strengthening its digital finance strategy. In the UAE, regulators are building supervised digital asset infrastructure, and the central bank has launched the Digital Dirham initiative for both wholesale and retail use.
Malaysia is strengthening regulation by releasing discussion papers on asset tokenization. Digital assets are gaining importance in Islamic finance. Experts say the focus should shift from whether cryptocurrencies are allowed to how digital systems can be designed to meet the principles of Shariah law.
Stablecoins reached a combined market capitalization of about $317 billion in early 2026, strengthening their role in settlement and payments. In the coming years, growth will depend on clear Shariah guidelines, strong legal systems for digital ownership, and platforms that are easy for users while meeting regulatory requirements.
Saudi Arabia and the wider GCC region are expected to play a key role in driving the next phase of Islamic fintech as digital finance continues to evolve with Shariah principles.
