The Islamic Financial Services Board (IFSB) published the 13th edition of its Islamic Financial Services Industry (IFSI) Stability Report, highlighting renewed growth momentum in global Islamic finance and identifying persistent structural vulnerabilities that could limit scalability and resilience to global shocks. The report records total global IFSI assets of USD 3.88 trillion in 2024, a 14.9% year-on-year increase, with broad-based growth across Islamic banking, sukuk and Islamic insurance. Key indicators were described as broadly stable across capital, leverage, liquidity and asset quality in both banking and insurance, alongside wider adoption of IFSB standards and strengthened regulatory frameworks. Sector data in the report show 2024 asset growth of 17.05% for Islamic banking and 16.9% for Islamic insurance, while sukuk issuances increased by 25.6%; Africa and Central Asia posted the highest growth rates. Despite the surge in sukuk issuance and greater issuer diversity, the report identifies structural constraints including underdeveloped market infrastructure, complex sukuk structures, limited local-currency sovereign issuances, investor concentration and low trading volumes, and sets out forward-looking policy priorities calling for coordinated action by regulators, policymakers and industry stakeholders.

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