Market comment on behalf of Mindaugas Suklevicius - Founder and Fund Manager at HF Quarters
The global Islamic finance market is experiencing unprecedented momentum. Valued at about $5.5 trillion in 2024, the industry is projected to surpass $7.5 trillion by 2028. This expansion reflects a growing global appetite for ethical, asset-backed investments that offer both stability and social value.
The Dubai International Financial Centre (DIFC) is a key engine driving this expansion, cementing its role as a global financial powerhouse. The centre’s record-breaking first half of 2025 lifted total active registered companies to 7,700, about 25% year-on-year, while assets under management (AUM) are around $700 billion. This growth sits on a foundation of regulatory stability, 100% foreign ownership, and a modern tax framework, creating strong conditions for Sharia-compliant funds to thrive and attract capital.
A key forward-looking driver is the powerful synergy between Islamic finance and the global demand for Environmental, Social, and Governance (ESG) criteria. Both frameworks commonly exclude sectors like gambling and tobacco, emphasise real-economy activity and risk-sharing structures. This ethical alignment is broadening the appeal of Sharia-compliant funds beyond their traditional investor base, attracting a new wave of global impact investors.
With over 10,000 funds now managed or marketed from the DIFC, the convergence of ethical principles and sophisticated financial structuring is set to define the next decade of sustainable finance.
