(B.S.B., 9th) In 2025, Brunei maintained its 13th place ranking in the Global Islamic Finance Development Indicator (IFDI), demonstrating the resilience and continued growth of Brunei’s Islamic finance industry.
Although the global average IFDI score increased from 29 in 2024 to 31 in 2025 (based on 2024 data), Brunei’s IFDI score dropped from 12 in 2024 to 11 in 2025.
These results are from the latest ‘Islamic Finance Development Report 2025’ jointly released by the Islamic Corporation for the Development of the Private Sector (ICD) and London Stock Exchange Group (LSEG), titled ‘50 Years of Exponential Growth’.
The report evaluates the performance of the global Islamic finance industry across 140 countries (including four newly added countries for 2025: South Sudan, Jamaica, Kosovo, and Lesotho).
The Islamic Finance Development Indicator (IFDI) is a weighted composite index used to measure the overall development level of the Islamic finance industry, and to assess whether it complies with Islamic principles. The indicator is evaluated based on five key metrics: financial performance, governance, sustainability, awareness, and knowledge.
The report shows that the top ten countries maintained their respective positions in the IFDI ranking, with Malaysia, the Kingdom of Saudi Arabia, and the United Arab Emirates in the top three, becoming the countries with the highest overall development level of Islamic financial markets in 2024.
Iraq entered the top 15 for the first time, ranking 14th with a score of 30, replacing Nigeria from the previous assessment.
The IFDI also highlighted the sustained rapid growth of the industry, projecting that by 2024, its size will reach USD 6 trillion, up from USD 4.9 trillion in 2023, with an average annual growth rate as high as 21%.
This achievement was mainly driven by strong performance in several key areas, including record growth in the Islamic bond (Sukuk) market. The global Islamic bond market’s cumulative value surpassed USD 1 trillion, with issuances growing by 11% in 2024 to reach USD 254.3 billion.
In addition, robust growth in Islamic banking assets also contributed to this achievement. In 2024, Islamic banking assets grew by 21% to USD 4.3 trillion; steady expansion in Islamic funds, other Islamic financial institutions (OIFI), and Islamic insurance (Takaful) sectors also played an important role, with the combined assets of these three areas reaching USD 637 billion.
In 2024, Islamic banking continued to dominate the distribution of Islamic financial assets, accounting for 72% of total global Islamic financial assets. This was followed by Islamic bonds (17%), Islamic funds (5%), other Islamic financial institutions (3%), and Islamic insurance (2%).
Looking ahead, the IFDI forecasts that by 2029, total global Islamic financial assets will reach USD 9.7 trillion, indicating continued growth for the industry.
Despite an overall drop in the financial performance indicator score to 9, Brunei performed strongly in the Islamic insurance (Takaful) sub-indicator, with a total Islamic insurance asset value of USD 500 million, ranking 10th.
Additionally, the awareness indicator rose significantly, from 24 in IFDI 2024 to 44 in IFDI 2025. This increase was mainly driven by a rise in the number of news publications related to Islamic finance.
In terms of corporate governance, Brunei maintained a full score in the regulatory sub-indicator, contributing to a slight increase in the overall governance score from 71 in IFDI 2024 to 72 in 2025. The ‘Islamic Finance Development Report 2025: 50 Years of Exponential Growth’ can be accessed on the London Stock Exchange Group (LSEG) website.
Although the global average IFDI score increased from 29 in 2024 to 31 in 2025 (based on 2024 data), Brunei’s IFDI score dropped from 12 in 2024 to 11 in 2025.
These results are from the latest ‘Islamic Finance Development Report 2025’ jointly released by the Islamic Corporation for the Development of the Private Sector (ICD) and London Stock Exchange Group (LSEG), titled ‘50 Years of Exponential Growth’.
The Islamic Finance Development Indicator (IFDI) is a weighted composite index used to measure the overall development level of the Islamic finance industry, and to assess whether it complies with Islamic principles. The indicator is evaluated based on five key metrics: financial performance, governance, sustainability, awareness, and knowledge.
The report shows that the top ten countries maintained their respective positions in the IFDI ranking, with Malaysia, the Kingdom of Saudi Arabia, and the United Arab Emirates in the top three, becoming the countries with the highest overall development level of Islamic financial markets in 2024.
Iraq entered the top 15 for the first time, ranking 14th with a score of 30, replacing Nigeria from the previous assessment.
The IFDI also highlighted the sustained rapid growth of the industry, projecting that by 2024, its size will reach USD 6 trillion, up from USD 4.9 trillion in 2023, with an average annual growth rate as high as 21%.
This achievement was mainly driven by strong performance in several key areas, including record growth in the Islamic bond (Sukuk) market. The global Islamic bond market’s cumulative value surpassed USD 1 trillion, with issuances growing by 11% in 2024 to reach USD 254.3 billion.
In addition, robust growth in Islamic banking assets also contributed to this achievement. In 2024, Islamic banking assets grew by 21% to USD 4.3 trillion; steady expansion in Islamic funds, other Islamic financial institutions (OIFI), and Islamic insurance (Takaful) sectors also played an important role, with the combined assets of these three areas reaching USD 637 billion.
In 2024, Islamic banking continued to dominate the distribution of Islamic financial assets, accounting for 72% of total global Islamic financial assets. This was followed by Islamic bonds (17%), Islamic funds (5%), other Islamic financial institutions (3%), and Islamic insurance (2%).
Looking ahead, the IFDI forecasts that by 2029, total global Islamic financial assets will reach USD 9.7 trillion, indicating continued growth for the industry.
Despite an overall drop in the financial performance indicator score to 9, Brunei performed strongly in the Islamic insurance (Takaful) sub-indicator, with a total Islamic insurance asset value of USD 500 million, ranking 10th.
Additionally, the awareness indicator rose significantly, from 24 in IFDI 2024 to 44 in IFDI 2025. This increase was mainly driven by a rise in the number of news publications related to Islamic finance.
In terms of corporate governance, Brunei maintained a full score in the regulatory sub-indicator, contributing to a slight increase in the overall governance score from 71 in IFDI 2024 to 72 in 2025. The ‘Islamic Finance Development Report 2025: 50 Years of Exponential Growth’ can be accessed on the London Stock Exchange Group (LSEG) website.