The global Islamic financial services industry (IFSI) achieved a record-breaking milestone in 2024, surpassing $3.88 trillion in assets, a 14.9% year-on-year growth, signaling a new era of expansion and opportunity.
According to Dr. Shaibu Ali, Director General of the Islamic Finance Roundtable Initiative Ghana (IFRIG), this rapid expansion presents timely opportunities for Islamic finance to reshape Ghana’s financial landscape.
“Islamic finance is no longer marginal. It provides an ethical, asset-backed, and risk-sharing model that aligns with Ghanaian cultural and moral values,” Dr. Ali said.
What’s Driving the Surge?
A favourable macroeconomic environment marked by declining inflation and interest expectations, security in capital flows, and growing investor demand for Shariah-compliant instruments powered the industry’s strong growth.
Regional breakdown
These are how the regional blocs performed in the Islamic finance industry in 2024.
Gulf Cooperation Council (GCC): 53.1% of total assets, driven by Saudi Arabia, UAE, and Kuwait.
East Asia & Pacific: 21.9%, led by Malaysia and Indonesia.
Middle East & North Africa (excluding GCC): 16.9%.
Sub-Saharan Africa, Europe, and South Asia are quickly becoming new frontiers for growth, according to global industry data.
Sector Dynamics
Islamic Banking remains dominant at 71.6% of total assets, growing 17.05% year-on-year. Deposits and financing surged due to regulatory modernization, product innovation, and digitalization.
Ṣukūk (Islamic bonds) issuances grew 25.6% in 2024 to $230.4 billion, with overall outstanding ṣukūk exceeding $900 billion. Governments and corporations increasingly tapped this Shariah-compliant funding channel.
Takāful (Islamic insurance) rose to $54.4 billion in assets, with gross written contributions of USD 28.6 billion significantly outpacing conventional insurance’s growth.
However, growth remains skewed toward banking, making diversification into capital markets and insurance essential for long-term stability.
Why Ghana Should Act Now
Finance in Ghana is entering a transformative phase as Islamic finance gains global momentum, surpassing $3.88 trillion in assets in 2024. With its ethical principles and asset-backed models, Islamic finance offers Ghana a strategic opportunity to diversify funding sources, enhance financial inclusion, and attract Gulf investment.
Leveraging Shariah-compliant tools like sukuk and takaful can boost infrastructure, SMEs, and sustainable development across the country.
Dr. Ali believes Ghana stands at a promising crossroads. With substantial segments of the population either unbanked or unwilling to engage with conventional interest-bearing products, Islamic finance offers alternative, value-aligned options.
“Ghana can attract Gulf and Southeast Asian capital by establishing Islamic banks, ṣukūk markets, and takāful providers. This diversity can finance infrastructure, SMEs, agriculture, and green energy without increasing conventional debt levels,” he said.
Countries like Malaysia, the UK, and the UAE have used Islamic financial tools for major infrastructure projects. Ghana, he noted, could emulate this by issuing sovereign ṣukūk to fund hospitals, roads, schools, and clean energy projects.
Policy Measures for Ghana
Dr. Ali emphasized the need for regulatory preparedness, establishing a clear Islamic finance framework, granting tax neutrality for Islamic contracts, and facilitating collaboration between Islamic and traditional financial institutions.
These reforms could position Ghana as a West African hub for Islamic finance, capitalizing on both ethical investment demand and regional trade under programs like AfCFTA.
Social Impact and Financial Inclusion
Islamic microfinance using profit‑and‑loss sharing, interest‑free lending, and waqf funds can provide capital to low-income families and small entrepreneurs. This supports poverty reduction and SME growth within an ethical financial system.
Dr. Ali added that the rise of Islamic finance is global, and Ghana must not be left behind. We must act now to integrate these inclusive, ethical, and resilient models into our financial system.”
Global Outlook
The IFSI enters 2025 with momentum, but future success depends on regulatory harmonisation, innovation in Shariah-compliant products, cross-border collaboration, and digital capacity. In Ghana, the Central Bank already has in place a high-level technical team tasked with crafting a framework for Islamic finance. It’s only a matter of time before Ghana reaps the promising financial stability, inclusion, and sustainable investment that this banking model brings.
