Standard Chartered has positioned the UAE as an Islamic finance connector capable of routing Shariah-compliant capital towards high-growth markets in Asia and Africa, as the bank projects global Islamic finance assets will reach $7.5 trillion by 2028, up from $5.5 trillion in 2024.
The bank published those figures in its report, Islamic Banking for Financial Institutions: The Islamic Finance Connector Era, released alongside a Standard Chartered press release on the state of the global industry.
Where UAE Islamic finance capital currently falls short
Only 6 per cent of global sukuk capital currently reaches South Asia and Africa, the report said, pointing to a structural gap between where liquidity sits and where investment demand is strongest.
Standard Chartered said the sukuk market is expected to expand from $971 billion in 2024 to $1.5 trillion by 2028. Islamic banking assets, which account for more than 70 per cent of all Islamic finance assets globally, are projected to grow from $4 trillion in 2024 to $5.2 trillion by 2028.
The bank said the main challenge in many markets was not a shortage of liquidity but the inability to connect available capital with viable investment opportunities. New economic corridors linking the GCC with Asia, Türkiye and Africa were identified as a key growth driver, with infrastructure finance, private credit, blended finance and sustainable investment among the sectors expected to benefit.
Khurram Hilal, Chief Executive Officer of Group Islamic Banking at Standard Chartered, said Islamic finance had become a significant enabler of cross-border trade. ‘As its role in facilitating trade, investment and capital flows continues to grow, institutions need recognised financing structures and operational capabilities that enable Shariah-compliant capital to move seamlessly across borders,’ he said.
Standard Chartered Saadiq, the bank’s Islamic banking platform, won The Banker’s Islamic Bank of the Year 2026, International award. Hilal described the recognition as reflecting ‘a structural shift in Islamic banking, from an integrated financing model,’ adding that ‘Islamic banking is shifting from regional liquidity to globally deployable capital,’ according to the bank’s Standard Chartered Islamic banking leadership page.
The UAE’s strategy and digital infrastructure
The UAE Cabinet approved the National Strategy for Islamic Finance and Halal Industry in May 2025, according to the UAE Central Bank Annual Report 2025. The Central Bank Governor chairs the committee responsible for implementing the strategy, which aims to expand Islamic capital markets and increase domestic Islamic banking assets by 2031.
Standard Chartered said the UAE’s location between East and West, its regulatory frameworks for digital and virtual assets, and its expanding digital finance ecosystem gave it a structural advantage in moving Islamic capital across the GCC, Europe, Asia and Africa.
The report called for financial institutions to move beyond treating Islamic banking as a standalone product. Building capabilities that connect investors, clients and markets across multiple jurisdictions was described as essential for the industry’s next phase.
Tokenisation, digital assets and payment infrastructure were highlighted as tools that could improve cross-border capital mobilisation and widen investor access, drawing on analysis also cited by LSEG and Coalition Greenwich in separate assessments of the sector’s trajectory.
Standard Chartered Saadiq operates across 30 markets and describes itself as the only international bank with a dedicated global Islamic banking franchise. The sukuk market’s projected rise to $1.5 trillion by 2028 will test whether that infrastructure can be scaled quickly enough to close the gap between available capital and emerging-market demand.
