Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Skip to content
Home » How big is the Islamic banking system?

How big is the Islamic banking system?

Islamic banking, a system adhering to Sharia principles, has experienced remarkable growth in recent years. Between 2009 and 2013, Sharia-compliant banking expanded at an impressive annual rate of 17.6%, outpacing the growth of conventional banking. Despite this rapid growth, the size of the Islamic banking system remains comparatively smaller than its conventional counterpart, standing at an estimated $2 trillion. However, it constitutes only 1% of the total world banking sector. Despite its relatively smaller size, Islamic banking has a widespread presence, with Islamic financial institutions operating in 105 countries as of 2010.

This growth in Islamic banking can be attributed to several factors. Firstly, there is a growing global Muslim population seeking financial services that align with their religious beliefs. Additionally, increased awareness and acceptance of Islamic finance principles among non-Muslims have contributed to its expansion. Moreover, many governments and financial institutions have recognized the potential of Islamic banking and have taken steps to support its development, further fueling its growth.

Despite its significant growth and widespread presence, the Islamic banking sector still faces challenges. Regulatory hurdles and lack of standardization across different jurisdictions remain key obstacles. Furthermore, there is a need for greater education and awareness about Islamic finance principles among both consumers and financial professionals. Overcoming these challenges will be crucial for the Islamic banking sector to realize its full potential and further establish itself as a viable alternative to conventional banking.

(Response: The Islamic banking system is estimated to be $2 trillion in size, constituting only 1% of the total world banking sector, but it has experienced rapid growth in recent years, expanding at an annual rate of 17.6% between 2009 and 2013. Despite its smaller size, Islamic banking has a widespread presence, operating in 105 countries as of 2010.)