Top 10 Islamic Capital Markets in 2025: Shaping the Muslim World’s Wealth

By any conventional reading of global finance, capital markets in the Muslim world were long treated as peripheral: important domestically, cyclical internationally, and rarely central to portfolio construction. That assumption is becoming harder to sustain.

Measured purely by equity market capitalisation, several Muslim-majority economies now host exchanges that rank among the world’s largest. More importantly, they are evolving in ways that matter to long-term investors: deeper liquidity, clearer regulation, stronger links to global indices and, in some cases, a sophisticated integration of Islamic finance into mainstream capital formation.

This ranking is based on domestic equity market capitalisation, using the most recent consolidated statistics from the World Federation of Exchanges and official exchange disclosures where end-year figures are clearer. It is not a judgement on liquidity, governance quality or investor friendliness alone—but on where capital is most heavily concentrated today.

Related: Mapping the Muslim World’s Capital Markets: Scale, Sectors, and Trading Behavior

1. Saudi Stock Exchange (Tadawul) — Saudi Arabia

Saudi Arabia’s exchange is the clear outlier. With equity market capitalisation measured in the trillions of dollars, Tadawul alone accounts for a substantial share of the Muslim world’s listed equity value.

Oil still dominates, but the composition is shifting. Banks, telecoms, utilities and infrastructure-linked companies have gained weight, supported by a steady pipeline of IPOs tied to Vision 2030. Foreign ownership limits have eased, index inclusion has deepened and sukuk issuance has become a routine funding tool rather than a specialist product. Tadawul now operates less like a frontier market and more like a systemically relevant emerging one.

2. Tehran Stock Exchange — Iran

By headline market capitalisation, Tehran ranks second—an uncomfortable statistic for many international investors, and one that demands context. Capital controls, limited foreign participation and exchange-rate distortions inflate dollar-converted valuations.

Still, domestically, Tehran is a central mechanism for capital allocation across energy, manufacturing and basic industries. Its sheer size underscores a broader point: market capitalisation alone does not equate to accessibility or investability, but it does reveal where domestic savings are being channelled.

3. Indonesia Stock Exchange — Indonesia

Indonesia’s exchange reflects the economic gravity of the world’s largest Muslim-majority nation. Banks, consumer companies, miners and telecoms dominate listings, underpinned by a large domestic investor base.

Islamic finance plays a supporting rather than defining role, but Shariah-compliant equities and sovereign sukuk are expanding steadily. For global investors, Jakarta’s appeal lies less in ideology and more in demographics: a young population, rising consumption and a capital market that increasingly mirrors the real economy.

4. Abu Dhabi Securities Exchange — United Arab Emirates

Abu Dhabi’s exchange has grown rapidly, propelled by the listing of large state-linked groups in energy, utilities and logistics. Sovereign backing has delivered scale quickly, while reforms have improved settlement infrastructure and foreign access.

ADX is increasingly positioned as a venue for long-term capital, particularly in asset-backed and sukuk-style instruments that align with both Islamic finance and sustainability-focused mandates.

5. Bursa Malaysia — Malaysia

Malaysia’s market is smaller than some peers by headline size, but more mature by design. Regulatory consistency, institutional participation and a deeply embedded Islamic capital-market framework distinguish Bursa Malaysia from most emerging exchanges.

Shariah screening, Islamic ETFs and sukuk issuance are fully integrated rather than treated as parallel systems. For investors seeking scale with governance clarity, Kuala Lumpur remains the most polished Islamic finance hub.

6. Borsa Istanbul — Türkiye

Türkiye’s exchange is large, liquid and volatile. Manufacturing, banking and transport anchor listings, while heavy retail participation drives turnover.

Currency instability complicates valuation comparisons, but Istanbul remains one of the Muslim world’s most active trading venues. Islamic finance is growing, though it remains secondary to conventional equity flows.

7. Dubai Financial Market — United Arab Emirates

Dubai’s market thrives on liquidity rather than sheer size. Property developers, banks and logistics firms dominate, supported by a constant churn of regional and international capital.

While smaller than Abu Dhabi’s exchange, Dubai benefits from its role as a global financial crossroads. Sukuk listings and Islamic funds form part of the ecosystem, though pragmatism, not ideology, defines the market’s appeal.

8. Qatar Stock Exchange — Qatar

Qatar’s exchange is compact but well capitalised. Banks, industrials and energy-linked companies dominate, reflecting the structure of the wider economy.

Liquidity can be uneven, but strong balance sheets and predictable dividend policies continue to attract institutional investors, particularly from the Gulf.

9. Boursa Kuwait — Kuwait

Kuwait’s market is sizeable relative to population and heavily weighted towards financial institutions. Market-structure reforms have improved transparency and settlement efficiency.

Islamic banks and investment companies play a disproportionate role, reinforcing Kuwait’s importance within the Shariah-compliant finance landscape, even as trading volumes remain modest.

10. Casablanca Stock Exchange — Morocco

Casablanca rounds out the list as North Africa’s largest equity market. Banks, telecoms and industrial groups dominate, with governance standards often cited as among the region’s strongest.

Though smaller in global terms, the exchange functions as a regional anchor for West and North African capital.

What the ranking reveals

Three conclusions stand out.

First, scale is no longer confined to the Gulf, even if Saudi Arabia remains dominant. Indonesia and Türkiye demonstrate how population and domestic savings can underpin large equity markets.

Second, Islamic finance is increasingly structural rather than symbolic. In Malaysia and the Gulf, sukuk and Shariah-compliant equities are central funding tools, not niche add-ons.

Third, market capitalisation is only a starting point. Liquidity, accessibility and currency stability ultimately determine whether these markets absorb global capital—or merely recycle domestic savings.

For investors willing to look beyond familiar benchmarks, the Muslim world’s capital markets are no longer an afterthought. They are becoming a permanent feature of the global financial landscape—uneven, evolving, and increasingly consequential.