Global Shift Towards Islamic Investment: An Ethical Financial Revolution

The global demand for Shariah-compliant investment options has witnessed remarkable growth in recent years, with Islamic finance becoming an increasingly significant force in global markets and Central Asia in particular, said international Sharia expert Mufti Muhammad Ibrahim Essa at an investment conference in Astana on Wednesday.

Total Islamic financial assets increased from about $2 trillion in 2015 to nearly $4.9 trillion in 2024, according to Mufti Essa’s presentation at the ITS Ideas 2025 conference, organized by Kazakhstan’s international trading platform ITS, which specializes in providing access to over 3,000 trading instruments listed on U.S. stock exchanges.

“Islamic investors are becoming a driving force in global markets. Their disciplined demand for halal, ethical options has attracted international attention and created new opportunities – from sukuk markets to Islamic fintech and takaful (Islamic insurance),” said Mufti Essa, CEO of Alhamd Shariah Advisory Services and a Sharia adviser to the Atrium Underwriting Syndicate for Lloyd’s of London.

“In 2025, we expect the Islamic finance market to surpass $5 trillion,” he added, noting that there are now more than 4,500 Shariah-compliant indexes globally, many of which are in non-Islamic countries, underscoring the expansion of Shariah-compliant investment products in emerging markets.

One such index is calculated by ITS – the ITS Shariah Index, which tracks 30 shares of international companies that comply with strict Shariah norms. ITS launched the ITS Shariah Index in 2023 and subsequently offered investors dollar-denominated ETFs linked to the index.

Mufti Essa, who is also chairman of the Sharia Board of United Bank Limited (Pakistan), chairman of the Sharia Board of Hayat Bank (Uzbekistan), and Sharia adviser to EFU Insurance and Takaful (Pakistan), contributed to the creation of the ITS halal bloc.

He described the ITS Shariah index as fully compliant with halal investment principles. These include investments free from Riba (interest), Gharar (excessive uncertainty or speculation), and investments from unethical or non-permissible sectors, such as alcohol, gambling, conventional banking/insurance, and weapons or harmful industries.

Globally, the Muslim population is approaching 2.0 billion after a 21% increase between 2010 and 2020, raising the Muslim share of the world population to about 25.6%.

Speaking in the capital of Kazakhstan, Mufti Essa noted that Central Asia, with its majority Muslim populations, represents a rapidly growing market for Islamic finance. Countries like Tajikistan, Turkmenistan and Kazakhstan have shown increasing interest in Shariah-compliant investment products, driven by both local demand and the need for development funding.

Mufti Essa also emphasized the diversity of Islamic investment instruments available today, debunking the myth that Islam limits investment options.

“Islamic finance offers a wide range of investment instruments, from equity funds to sukuk (Islamic bonds) and private equity,” he said.

Mufti Essa concluded that the rise of Islamic finance is more than just a trend – it is part of a broader movement towards ethical, sustainable investment.

“Islamic finance is growing, and with the support of scholars and experts, the instruments and players in the market will continue to expand.”