Press "Enter" to skip to content

Malaysia Eyes Global Leadership in Shariah Finance as Islamic Assets Set to Hit USD7.5 Trillion

Last updated on December 25, 2025

KUALA LUMPUR: Malaysia is doubling down on its Islamic finance leadership amid surging global demand for Shariah-compliant investments, as spotlighted at the 5th Invest Shariah Conference, jointly hosted today by Bursa Malaysia and CGS International Securities Malaysia (CGS MY).

Held under the theme “Innovating Islamic Finance: Unlocking Global Investment Potential”, the annual conference brought together financial leaders, Shariah scholars, and investors to examine capital flows, fintech innovation, and Islamic capital market growth opportunities.

With global Islamic finance assets projected to grow from USD5.5 trillion in 2024 to USD7.5 trillion by 2028, Malaysia is positioning itself to capture this momentum. The country already commands a 36% global market share in sukuk, and Shariah-compliant assets now exceed RM2.6 trillion, accounting for 63% of Malaysia’s total capital market as of end-2024. Over 80% of companies listed on Bursa Malaysia are also Shariah-compliant.

“Islamic finance is fast asserting its global prominence, reshaping how markets align financial returns with ethical values,” said Dato’ Fad’l Mohamed, CEO of Bursa Malaysia. “We support Malaysia’s leadership by strengthening market infrastructure, expanding reach and driving innovation across Shariah-compliant product segments.”

Puan Azizah Mohd Yatim, CEO of CGS MY, noted that Malaysia’s end-to-end Islamic finance ecosystem is internationally recognised and export-ready.

CGS MY currently offers 10 Islamic products, with several market-first innovations introduced this year:

Fractional share trading on Bursa Malaysia for the first time via the UP trading platform, giving investors access to FBM KLCI’s top 30 stocks (of which at least 70% are Shariah-compliant).

Launch of Islamic Equity Linked Investment Notes and Islamic Autocallable Equity Structured Investment Notes for sophisticated investors.

Upcoming rollout of Islamic Repurchase Agreement in Malaysia and ESG Margin Financing-i in Singapore and Indonesia.

“Through accessible, investor-friendly innovations, we aim to make Shariah investing more inclusive and impactful,” said Azizah.

Today, 80% of global Islamic finance assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, UAE, and Kuwait. With a mature infrastructure and innovative product lineup, Malaysia is strategically positioned to scale its global influence in Islamic capital markets.

The conference featured deep-dive sessions on capital connectivity between Asia and the Middle East, the rise of private equity and venture capital in Islamic finance, digital transformation, ESG integration, and the future of multi-asset Shariah-compliant offerings.

Bursa Malaysia and CGS MY extended their appreciation to all regional speakers and participants for contributing to a dynamic dialogue on the future of Islamic finance.

Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.

    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.

Latest News