Saudi Arabia Islamic Finance Market By Financial Sector (Islamic Banking, Islamic Insurance, Sukuk Outstanding, Others), By Region, Competition, Forecast & Opportunities, 2027

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Saudi Arabia Islamic finance market size is estimated at USD 2.10 trillion in 2025, and is expected to reach USD 2.70 trillion by 2030, at a CAGR of 5.12% during the forecast period (2025-2030).

Saudi Arabia is considered one of the largest economies in the Middle East region and is the leading Islamic finance industry across the world and is working towards making Saudi Arabia the leader of the Islamic Finance market. The oil and natural gas industry is the major revenue-generating industry in the country, and it also has the presence of several mineral deposits. The continuous efforts made by the leading authorities to generate new income sources to boost the economy of the country and reduce the financial dependence solely on the oil and natural gas industry is expected to create potential growth for the Saudi Arabia Islamic finance market due to the high demand for digital services. The Kingdom of Saudi Arabia is considered one of the most special places by Muslims around the globe as it is the land of two main holy places that witness huge footfall every year. Accessibility to three major regions across the globe, including Asia-pacific, Europe, and Africa, is one of the major reasons for high economic growth in the Middle East region.

Market Size and Growth

• Total AssetsThe Islamic finance market in Saudi Arabia encompasses a wide range of financial services, including Islamic banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and Islamic funds. The total assets in the Islamic banking sector alone were estimated to be around USD 700 billion in recent years, making Saudi Arabia one of the leading countries in terms of Islamic banking assets.

• Market ShareIslamic banking assets constitute a substantial portion of the total banking assets in Saudi Arabia, often exceeding 50%. This dominance is due to the country's adherence to Islamic principles and the strong demand for Sharia-compliant financial products.

Key Components

1. Islamic BankingSaudi Arabia is home to some of the largest Islamic banks in the world, such as Al Rajhi Bank, which is one of the largest Islamic banks globally. Other significant players include Bank AlJazira and Alinma Bank.

2. Sukuk MarketThe Saudi Arabian government and corporate entities actively issue Sukuk to raise capital. The Sukuk market has seen robust growth, with both domestic and international issuances.

3. TakafulThe Takaful sector in Saudi Arabia is also growing, with increasing awareness and demand for Sharia-compliant insurance products.

4. Islamic FundsThere is a growing number of Islamic investment funds in Saudi Arabia, catering to both individual and institutional investors seeking Sharia-compliant investment opportunities.

Regulatory Environment

• The Saudi Arabian Monetary Authority (SAMA), now known as the Saudi Central Bank, plays a crucial role in regulating and supervising the Islamic finance industry. The regulatory framework is designed to ensure compliance with Sharia principles while promoting financial stability and growth.

• The Capital Market Authority (CMA) also oversees the issuance and trading of Sukuk and other Islamic financial instruments.

Future Outlook

• The Islamic finance market in Saudi Arabia is expected to continue its growth trajectory, driven by the country's Vision 2030 initiative, which aims to diversify the economy and develop the financial sector.

• Increased digitalization and fintech innovations are likely to further propel the market, making Islamic financial products more accessible to a broader audience.

Islamic Finance can be defined as the banking or financing activity that complies with Sharia and its practical application through the development of Islamic finances. The common modes of Islamic Finance include Musharaka, Wadiah, Murabahah, Ijara, and Mudarabah.

The Saudi Arabia’s government is making efforts to improve the financial status of the country by introducing different schemes and policies. The launch of Saudi Vision 2030 is an initiative taken by the leading authorities to lower the dependence on the oil industry, diversify income sources, and develop public sources such as tourism, education, health, infrastructure, and recreation sectors. It is also expected to reinforce the economic activities in the region and boost the non-oil industry trade between the countries through consumer goods and increase the government spending on manufacturing equipment, ammunition, and military. For improving the economic status of the country, the official government launched several reform programs, including the Financial Sector Development Program to strengthen its economic position around the globe which is expected to create lucrative opportunities for the Saudi Arabia Islamic finance market in the forecast period.

The development of the advanced infrastructure, new markets, and new products and services in the region is creating opportunities for the economic growth of the country. With the improvement of the financial conditions of Saudi Arabia, the market is open for foreign investments for the development of the country. The market in Saudi Arabia is one of the emerging markets attracting a lot of investors from around the world. Saudi Vision 2030 majorly aims to develop the Saudi capital markets to stabilize the economy and achieve sustainable growth in the forecast period.

The Saudi Arabia Islamic finance market is segmented on the basis of financial sector regional distribution, and company. Based on the financial sector, the market is divided into Islamic banking, Islamic insurance, sukuk outstanding, and others. To analyze the market based on the region, the Saudi Arabia Islamic Finance market is studied in major regions namely North & Central region, Southern region, Western region, and Eastern region.

The Saudi National Bank, The Al Rajhi Bank, The Saudi British Bank, Riyad Bank, The Saudi American Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Al Bilad Bank, Bank Aljazira, are among the major market players in the Saudi Arabia platform that lead the market growth of the Saudi Arabia Islamic Finance market.

Years considered for this report

Historical Years2017-2020

Base Year2021

Estimated Year2022

Forecast Period2023–2027

Objective of the Study

• To analyze the historical growth in the market size of the Saudi Arabia Islamic Finance Market from 2023 to 2027.
• To estimate and forecast the market size of Saudi Arabia Islamic Finance Market from 2023 to 2027 and growth rate until 2027.
• To classify and forecast the Saudi Arabia Islamic Finance Market based on machine learning technology, process, application, offering, region, and company.
• To identify the dominant region or segment in the Saudi Arabia Islamic Finance Market.
• To identify drivers and challenges for the Saudi Arabia Islamic Finance Market.
• To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in the Saudi Arabia Islamic Finance Market.
• To identify and analyze the profiles of leading players operating in the Saudi Arabia Islamic Finance Market.
• To identify key sustainable strategies adopted by market players in Saudi Arabia Islamic Finance Market.

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MIR performed both primary as well as exhaustive secondary research for this study. Initially, MIR sourced a list of service provider across the country. Subsequently, MIR conducted primary research surveys with the identified companies. While interviewing, the respondents were also enquired about their competitors. Through this technique, MIR could include the service providers who could not be identified due to the limitations of secondary research. MIR analyzed the service provider and presence of all major players across the country.

MIR calculated the market size of the

Key Target Audience

• Islamic finance service providers
• Market research and consulting firms
• Government bodies such as regulating authorities and policy makers

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The study is useful in providing answers to several critical questions that are important for the industry stakeholders such