The global Islamic fintech market is on a rapid growth trajectory, projected to reach a transaction volume of $341 billion by 2029, fueled by robust activity and increasing demand from the Middle East. A new report by US-based DinarStandard and UK-based Elipses, conducted in partnership with the Qatar Financial Centre and the Islamic Development Bank Institute (IsDBI), highlights the pivotal role of Gulf Cooperation Council (GCC) nations in this expansion.
A Region of Dominance
Currently valued at $198 billion for the 2024/25 period, the sector is forecast to grow at an impressive annual rate of 11.5%. The report identifies a core group of countries that collectively command 93% of the total global Islamic fintech market.
This dominant group includes the key GCC markets of Saudi Arabia, the UAE, Kuwait, and Qatar, alongside global peers such as Malaysia, Indonesia, Iran, Turkey, Bangladesh, and Pakistan. Their combined influence underscores the concentrated power driving innovation and adoption in Sharia-compliant financial technology.
Saudi Arabia’s Market Leadership
Within the GCC, Saudi Arabia stands out as the undisputed leader, boasting an estimated market size of $77.2 billion. The Kingdom’s market is projected to surge to $120.9 billion by 2029, cementing its position as the primary engine of growth for Islamic fintech in the region and globally.
UAE, Kuwait, and Qatar Bolster Growth
Other GCC countries are also making significant contributions to the sector’s expansion. The UAE’s market, currently at $10.5 billion, is expected to reach $15.6 billion in the next five years.
Kuwait is demonstrating strong potential with a market size of $8.9 billion, which is forecast to nearly double to $16.8 billion by 2029. Qatar’s market is also on a positive track, projected to grow from $3.1 billion to $4.8 billion in the same period.
About DinarStandard
DinarStandard is a growth strategy research and advisory firm focused on the global Islamic economy and halal markets. The firm specializes in providing market intelligence, strategic insights, and execution support to corporations, governments, and non-profits, helping them navigate and capitalize on emerging global opportunities.
Source: Zawya
