World's Best Islamic Finance, 2024

Malaysia continues to lead the world in Islamic finance, ranking first in the Islamic Finance Development Index (IFDI) 2024 with a score of 144, according to the latest ICD - LSEG Islamic Finance Development Report. The index measures the strength of Islamic finance sectors worldwide based on factors like financial performance, governance, knowledge, awareness, and corporate social responsibility (CSR).

Top Performers in Islamic Finance

1. Malaysia (144) – As the global hub of Islamic finance, Malaysia dominates with its well-established banking system, Sukuk (Islamic bonds) market, and strong regulatory framework.
2. Saudi Arabia (119) – The Kingdom’s robust Islamic banking sector and growing Shariah-compliant investments solidify its position.
3. UAE (88) – A key player in the Middle East, the UAE boasts a flourishing Islamic banking sector, particularly in Dubai and Abu Dhabi.
4. Indonesia (85) – Southeast Asia’s largest economy is rapidly expanding its Islamic finance industry through digital banking and Shariah-compliant fintech initiatives.
5. Pakistan (75) – A strong push from the government and central bank has driven Pakistan’s progress in Islamic banking and Sukuk issuance.

Other Key Players in Islamic Finance

Kuwait (70), Bahrain (68), Iran (65), Qatar (60), and Türkiye (45) round out the top 10, showcasing their strong Islamic banking sectors and investment markets. Bangladesh (41), Oman (39), Brunei (29), Jordan (29), and Nigeria (28) highlight the increasing footprint of Islamic finance beyond traditional Gulf and Southeast Asian markets.

Global Trends in Islamic Finance

• Sukuk Growth – Islamic bonds continue to gain traction, with more countries issuing sovereign and corporate Sukuk to attract ethical investors.
• Fintech & Digital Banking – Countries like Malaysia, Indonesia, and UAE are driving innovation with Islamic neobanks, digital wallets, and blockchain-based solutions.
• Sustainable & ESG Investments – Islamic finance is increasingly aligned with environmental, social, and governance (ESG) principles, attracting global interest.

As Islamic finance expands beyond its traditional markets, the 2024 IFDI rankings reflect the growing influence of Shariah-compliant banking, investments, and digital financial solutions worldwide.