Islamic banking has evolved from a niche offering to a mainstream
\nfinancial segment, spanning more than 80 countries and assets exceeding USD 5
\ntrillion. Yet, ambiguities around what it is \u2013 its principles, structures, and market
\ndynamics \u2013 pose challenges for corporate leaders seeking to engage with or invest in
\nthis space, with 65 per cent of corporates indicating interest in Shariah-compliant
\nsolutions had no prior background, or exposure to Islamic banking.
\n\u2018Islamic Banking for Corporates: Broadening Horizons\u2019, a report by Standard Chartered
\npublished today, identifies a lack of product familiarity as a key factor restricting
\ncorporates from accessing USD 5.5 trillion in global Islamic finance assets, which is
\nprojected to reach USD 7.5 trillion by 2028. The number of corporate Sukuk issuers has
\nnearly doubled since 2020, driving a 38 per cent increase in issuance volumes to USD
\n58.8 billion in 2024.
\n\u201cIslamic banking has evolved into one of the world\u2019s fastest-growing sources of capital,
\nbut awareness amongst corporates has not kept pace,\u201d said Khurram Hilal, CEO of
\nGroup Islamic Banking at Standard Chartered. \u201cCorporates that build Islamic finance
\ncapabilities stand to access specialised capital pools with trillions in assets, preferential
\npricing in oversubscribed markets, government incentives in high-growth markets, and
\nESG-focused capital pools where ethical screening is structurally embedded. This
\nknowledge gap reflects an increasingly expensive opportunity cost.\u201d
\nSustainability and AI driving momentum
\nIslamic finance principles align closely with ESG frameworks, both prioritising
\ntransparency, fairness, ethical conduct and environmental responsibility. Sustainable
\nSukuk were oversubscribed by an average of 4.3 times their issuance value in 2024,
\ncompared to 3.1 times for regular Sukuk, reflecting heightened investor demand for
\ninstruments that meet both Shariah and sustainability criteria.
\nDigital innovation is further accelerating this momentum. Tokenised Sukuk, blockchain-
\nbased settlements, and AI-enabled Shariah-compliance tools are set to transform how<\/p>\n
capital is raised and managed, while reducing issuance costs and improving cross-
\nborder governance.
\nGateway to high-growth emerging markets
\nIslamic banking provides strategic access to critical trade corridors and economies
\nwhere Shariah-compliant finance is increasingly expected or mandated, particularly
\nacross the GCC, Southeast Asia, South Asia, and Africa. Shariah-compliant finance
\nunderpins much of the USD 5.7 trillion South-South Corridor connecting these regions,
\nwhich now accounts for nearly a quarter of global trade. This has become increasingly
\nrelevant amid shifting trade and investment corridors.
\nThe Halal economy alone represents a USD 2.2 trillion market opportunity. Corporates
\noperating across Muslim-majority markets are increasingly leveraging Islamic trade
\nfinance and supply chain solutions through initiatives such as Standard Chartered
\nSaadiq\u2019s Halal360, and the expanding Islamic trade finance networks.
\nStandard Chartered is the only international bank with a global Islamic banking
\nfranchise, serving clients across more than 30 markets through Standard Chartered
\nSaadiq. The bank has arranged over USD 200 billion in Islamic financing, spanning
\nSukuk, structured trade and sustainable-finance solutions.
\n\u201cIslamic finance is now a strategic conversation in boardrooms,\u201d Khurram Hilal added.
\n\u201cOur role is to bridge interest with expertise, helping global corporates deploy practical
\nand cross-border Shariah-compliant banking solutions that support their business
\nstrategies.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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