The takaful sector experienced steady growth during 2025, with global takaful assets expanding at an estimated rate of 15-17% annually, according to Mr Zubair Mughal, an expert in Islamic banking and finance.
The commentary by Mr Mughal, who currently serves as CEO of AlHuda Centre of Islamic Banking and Economics (UAE), is published in a media statement released by the Centre.
Markets in the Gulf Cooperation Council and Southeast Asia continued to dominate, supported by stronger regulatory frameworks, higher insurance penetration, and more developed investment markets.
In contrast, takaful development in Africa and Central Asia remains constrained by regulatory capacity gaps, limited re-takaful availability, and shallow domestic capital markets.
Strengthening institutional frameworks and expanding Shariah-compliant investment avenues will be critical to sustaining takaful growth beyond core markets. Takaful contributed approximately 2% of total assets in the Islamic financial industry.
The structure of the Islamic finance industry remains highly concentrated as follows:
• Islamic banking accounts for approximately 72% of total industry assets, equivalent to more than $2.7tn globally.
• Sukuk represents the second-largest segment, with an estimated share of 18% depending on classification, Islamic FinTech accounted for roughly 3% of industry activity and has emerged as the fastest-growing subsector.
• Islamic capital markets beyond Sukuk, including Islamic funds, asset management, pension funds, and Islamic REITs, collectively represent around 3% of total assets.
• Takaful and Islamic microfinance and social finance each contribute approximately 2%.
• The remaining 1% comprises miscellaneous activities such as Islamic leasing entities and Mudarabah-based investment pools.
Mr Mughal notes that the total assets in the global Islamic finance industry stood at $5.2tn at the end of 2025, with a clear trajectory toward $6tn by 2026.