The slightly over two billion Muslims accounting for approximately 26% of the world's population, present significant opportunities for Islamic finance as financial technology ( fintech ) reshapes the wider financial landscape,  expanding  access to Shariah-compliant financial products and modernizing the delivery of Islamic financial services.

Islamic finance – an industry rooted in principles that emphasize ethical conduct, social responsibility and economic equity – has assets of US$5.5 trillion in 2024, representing approximately 2% of global financial assets, according to research by Standard Chartered, and these assets are projected to expand by 36% to US$7.5 trillion by 2028.

The top 10 countries with the largest Muslim populations – namely Indonesia, Pakistan, India, Bangladesh, Nigeria, Egypt, Iran, Turkey, Sudan and Algeria – are home to 65% of the world’s Muslims, or a combined 1.3 billion people, according to the Pew Research Center.

Shariah-compliant Islamic finance products, such as sukuk ( Islamic bonds ) and takaful ( Islamic insurance ), are now well-established among Muslim investors in the Middle East and Southeast Asia. Islamic fintech has become an increasingly dynamic area of innovation in these regions, which already possess relatively mature Shariah-compliant financial systems.

Digital payments

An indispensable segment of the Islamic fintech market is that of digital payment solutions. Payments and enabling technologies, according to a report by the Qatar Financial Centre and the London Stock Exchange Group, currently represent the largest segments of Qatar’s Islamic fintech industry in terms of the number of companies. This reflects the growing popularity of e-commerce, mobile wallets and contactless payment solutions.

Buy-now-pay-later ( BNPL ) services are also showing great potential in Qatar. Islamic finance principles – which prohibit interest and emphasize ethical lending – align well with the interest-free structure of the BNPL model. By integrating BNPL services into a Shariah-compliant framework, fintech companies in Qatar can deliver innovative solutions that promote financial inclusion while adhering to Islamic principles.

Blockchain tech, digital assets

Emerging technologies, such as blockchain and artificial intelligence ( AI ), are playing a critical role in modernizing financial infrastructure. Blockchain, in particular, is viewed as an attractive tool for enhancing transparency and security – two pillars that closely align with Islamic finance’s focus on ethical and transparent financial practices.

Outside of cryptocurrencies, blockchain technology has a much broader array of potential applications in halal investment. Sukuk, for instance, can be tokenized and remain Shariah-compliant, as recording them on the blockchain enhances transparency, allowing investors to better assess issuer credibility and make informed decisions. Additionally, blockchain-based assets benefit from higher security, as all transactions, profit distributions and real-time information are traceable and communicated to investors.

While some cryptocurrencies are considered Shariah-compliant, the crypto industry has elicited mixed views within the Islamic world. Certain scholars permit crypto investment as long as the underlying projects are halal, while others classify the entire asset class as haram ( forbidden or taboo in Arabic ), due to its speculative elements, price volatility and links to gambling.

Digital-only Islamic banking

Another growing trend is digital-only Islamic banking. In October 2025, Fasset, a Dubai-headquartered digital asset investment platform, announced that it had acquired a provisional banking licence from the Labuan Financial Services Authority in Malaysia – the financial regulator overseeing the Labuan International Business and Financial Centre, a special offshore zone targeting international businesses in banking, insurance, investment and digital assets.

The licence enables the company to offer digital banking services, and Fasset plans to use it to launch the world’s first Islamic digital bank powered by a stablecoin infrastructure.

Malaysia continues to lead the Southeast Asia region, supported by a robust regulatory and legal framework that nurtures Islamic financial innovation. Its Shariah Advisory Councils and clear compliance frameworks have positioned it as a global benchmark for balancing financial innovation with religious observance.

Meanwhile, Indonesia – home to the world’s largest Muslim population – is emerging as a key Islamic fintech market. Companies like Hijra ( formerly Alami ) now operate in over 480 cities, leading the sector with Shariah-compliant peer-to-peer lending, mobile banking and financial tools designed for underserved communities. What began as a start-up has evolved into one of the region’s most prominent integrated Islamic fintech platforms.