According to Abdou Diaw, head of the FDMI, the fund will mobilize Sharia-compliant resources and channel them toward small and medium-sized enterprises (SMEs), as well as organizations in the social and solidarity economy. It has been designed both as a financing tool and as a mechanism to better organize financial flows targeting these segments.

The FDMI replaces the Islamic microfinance development program known as Promise, launched in 2018 with support from the Islamic Development Bank. The program had focused on financing Senegal’s small businesses, women, and young entrepreneurs through products based on Islamic finance principles, including risk and profit sharing. SMEs account for about 97% of Senegal’s economic structure, playing a central role in employment and value creation.

“Promise’s transition into a formal fund brings a stronger governance framework and a broader regional rollout aimed at increasing social and economic impact. The shift reflects a broader effort by the government to structure its approach to Islamic microfinance and expand its role in promoting financial inclusion and entrepreneurship,” reported Ecofin Agency.

Senegal, which has close to 95% Muslim population, Islamic banking assets occupy a small share of the overall financial system. However, the African country is trying hard to change it. In 2015, it adopted a legal framework for waqf, apart from issuing several sovereign sukuk bonds, with a fourth issuance planned in 2026.

In February this year, the Islamic Bank of Senegal (BIS) signed a 20-million-euro financing agreement with the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group.

The agreement will expand BIS’s trade finance capacity, apart from supporting Senegal’s small and medium-sized enterprises. The funding also forms part of the five-year, 2-billion-euro framework signed in May 2025 between Senegal and the ITFC, under which, financing will target imports and exports of essential goods, including petroleum products and peanuts.

The ITFC will also mobilize 413.25 billion CFA francs for key sectors in Senegal, with the goal of supporting the African nation’s supply chains, hydrocarbon supplies, and the peanut sector.

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“Islamic syndications also now make up half of all the syndication issuance in the Gulf Cooperation Council (GCC) region, marking a sharp growth from 35% in 2025. Geopolitical uncertainty is among the key drivers,” Fitch said.

It further stated that issuers are moving away from traditional sukuk and bonds, backed by US dollar, amid the geopolitical volatility. Conventional syndication issuances in core markets slumped by around 27% year-on-year to USD 32 billion, while dollar sukuk issuances, on a quarterly basis, went down by 9% to USD 20 billion.

“Syndications are also increasingly becoming a popular financing of choice due to their private nature and lower requirements compared to public issuances. Another key driver is ample liquidity and capital buffers of GCC lenders, which have remained accommodating despite the Middle East conflict,” Fitch noted.

“About 65% of Fitch-rated Islamic banks and multilaterals globally are investment-grade, while GCC Islamic banks in particular maintained significant domestic market share, ample liquidity and capital buffers going into the conflict,” said Bashar Al Natoor, Fitch’s Global Head of Islamic Finance, while interacting with Zawya.

Talking about Islamic syndicated financing, it is a type of arrangement that complies with Islamic law and involves multiple lenders providing funds to borrowers. Financial institutions use these arrangements to pool resources and share risk, all while being Shariah-compliant.

While about 65% of Fitch-rated Islamic banks and multilaterals have remained investment-grade till date, Gulf-based financial entities enjoy significant domestic market share, ample liquidity and capital buffers, an advantage that is also helping them to deal with the fallouts of the Iran war.

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“We expect the war will affect the volume of sukuk issuance in 2026, with the extent of the decline dependent on the duration of hostilities and their impact on the GCC region’s real economy,” S&P said.

Detailing further, Mohamad Damak, S&P Global Ratings’ analyst, remarked, “Sukuk backed by industrial or commercial real estate, which represents 3% of the sukuk we rate, are most vulnerable. Should their assets be damaged in an attack, it could test the robustness of sukuk legal provisions for risk coverage.”

“We currently rate more than USD 180 billion in sukuk (programs and stand-alone issuances), with over 50% located in the GCC region,” he noted.

However, the top ratings agency did not see wider sukuk market issuance being significantly affected by the volatile Middle East situation. Total issuance reached USD 62.4 billion in Q1 2026, compared with USD 52.6 billion in the same period in 2025. The spike also included an uptick in foreign currency-denominated sukuk, which reached almost 20% over the same period.

In GCC countries, S&P Global Ratings observed a slight increase in overall issuances, though there was a decline in those denominated in foreign currency.

“We expect this slowdown to continue until the war concludes and its implications for GCC economies and sukuk issues become clearer. The war may also bring some risks unique to sukuk, relating to their underlying assets,” mentioned Damak, while interacting with TradeArabia.

“The new S&P report identified the potential for total loss events (TLE) and partial loss events (PLE), specifically physical destruction of or damage to assets, and the sponsor’s ability to meet contractual obligations,” he added.

Rated sukuk issued by financial institutions typically exclude TLE/PLE risk, as these get embedded at the level of the underlying asset, with their materialisation typically disqualifying the assets from the eligible pool.

Stating that an increased probability of TLE/PLE coupled with uncertainty regarding sponsor payments could lead to negative rating actions, Damak concluded, “S&P Global Ratings will continue to monitor the risks of physical destruction of assets and the credit impact on a case-by-case basis.”

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According to the industry body, while Malaysia’s economic fundamentals remain sound, geopolitical tensions may have indirect spillover effects through higher energy prices, market volatility and potential disruptions to trade and supply chains.

“These could impact business costs, inflation, and cash flows for certain segments of the economy. The Islamic banking industry remains vigilant and ready to respond to these evolving risks,” AIBIM said, while adding that the industry players are also advancing value-based intermediation (VBI) to deliver sustainable and inclusive outcomes.

Talking about the health of Malaysia’s Islamic finance sector, as per Bank Negara Malaysia (BNM), in its 2025 annual report, noted that Islamic financial assets in the Southeast Asian country have more than doubled from USD 468 billion in 2014 to USD 954 billion in 2024, with regional peers like Singapore and the Philippines also experiencing notable growth.

According to the BNM report, building on its strong domestic foundation, Malaysia has emerged as a regional leader in Islamic finance, expanding services, fostering innovation, and supporting cross-border growth. Last year, nine participants from ASEAN used the country’s commodity trading platform, Bursa Suq Al-Sila, completing transactions valued at RM55.9 billion for the year. In fact, in Malaysia and Indonesia, sukuk has been widely used to fund the development of various infrastructure projects and green initiatives.

“More recently, Islamic finance has increasingly been channelled toward green and transition-related activities. Indonesia and Malaysia collectively contributed 45% share of the global sustainable and responsible investment and environmental, social, and governance (ESG) sukuk outstanding in 2024. This reinforces the sector’s alignment with broader ESG objectives and strengthens its role as a catalyst for sustainable development,” BNM said.

The central bank also noted that by September 2025, Malaysian players captured 82% of Asean’s Islamic banking assets, while dominating the takaful and retakaful segments with a massive 91% share. The Southeast Asian country also accounts for about 75% of total outstanding sukuk in ASEAN.

“Beyond financing, Islamic finance also plays an important role in promoting inclusive wealth distribution through instruments such as zakat, waqf and sadaqah. In Indonesia, for instance, innovative instruments like cash waqf-linked sukuk and deposits enable individuals to channel funds into social, humanitarian, and public projects,” the report noted.

“Malaysia, meanwhile, has actively leveraged a blended financing initiative known as iTekad to support entrepreneurial activities by combining banks’ financing with zakat‑based seed capital, further reinforced by capacity‑building programmes and skills training. As these communities expand their income‑generating activities, they evolve from recipients to economic contributors who help uplift others. As a result, this creates pathways for more inclusive and sustainable growth within the economy,” it concluded.

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The entity has also issued Resolution No. 1 of 2026, amending its rulebook to incorporate provisions specific to bonds and sukuk, in addition to completing an integrated suite of operational and technical measures, including the introduction of a dedicated trading board for bonds and sukuk that is separate from equities.

“Trading sessions and price limits were structured to reflect the distinct nature of these instruments, differing from conventional equity trading mechanisms. Together, these measures represent a significant addition to the Kuwaiti capital market and constitute a pivotal step toward developing its investment environment and diversifying its instruments in line with international best practices,” said Boursa Kuwait.

“We are pleased to announce the completion of full operational and technical readiness for this phase, as system tests conducted by Boursa Kuwait and the capital market apparatus delivered successful results, confirming the trading infrastructure’s readiness. Boursa Kuwait is now fully equipped to receive listing applications and operate the bonds and sukuk trading platform, with instruments to be listed upon meeting the applicable regulatory requirements,” remarked the exchange’s CEO Mohammad Saud Al Osaimi.

Noting that investor confidence in Kuwait’s capital market is a trust the exchange is committed to upholding, Al Osaimi added, “What sets this phase apart is the introduction of new investment instruments at a time when the region is facing exceptional geopolitical challenges. This reflects the depth of investor confidence in Kuwait’s national economy and its capital market, underscoring the apparatus’s commitment to continued development despite these conditions.”

“We would also like to reassure all market participants that trading systems are operating at full efficiency, and that Boursa Kuwait is distinguished by a robust operational infrastructure that provides investors with the tools and environment needed to manage their portfolios with confidence,” he continued.

Resolution 38 establishes a comprehensive regulatory framework, covering the full lifecycle of bonds and sukuk in the Kuwaiti capital market, from listing and daily trading through to early redemption or maturity.

The new framework will further govern the listing of both domestic and foreign issuances, setting out ongoing obligations for issuers and obligors throughout the listing period and defining procedures for delisting and withdrawal, including mechanisms for the treatment of these instruments in relation to their exclusion from market indices.

The resolution’s regulatory amendments also align with five clear strategic objectives that reflect the long-term direction for the Kuwaiti capital market.

“These include aligning the Kuwaiti capital market’s regulatory framework with standards recognised in global capital markets, establishing a clear and structured approach to listing and trading that provides legal certainty for all stakeholders, and enhancing market liquidity through the introduction of a new class of tradable instruments. The amendments also aim to strengthen disclosure standards and transparency in a manner that serves investors’ interests and reinforces their confidence, while supporting greater diversification of investment instruments in the Kuwaiti market and reducing reliance on equities as the primary investment vehicle,” Boursa Kuwait added.

“For the first time ever, Kuwaiti and foreign companies can finance their operations and projects through the issuance of listed bonds or sukuk on Boursa Kuwait, benefiting from clear and viable financing advantages. The instruments allow issuers to secure funding at competitive costs compared to traditional bank borrowing and access a broader and more diversified investor base beyond conventional lenders,” it remarked.

Under the new framework, companies seeking listing in Boursa Kuwait must meet conditions designed to safeguard investor interests. These include obtaining a credit rating from a recognized rating agency, adhering to a minimum issuance value of no less than KD100,000 (USD 322,860) or its equivalent in foreign currencies, ensuring free tradability without restrictions and establishing a body to represent and protect the interests of bond or sukuk holders.

“Additionally, sukuk issuances must comply with the principles and rules of sharia,” Boursa Kuwait concluded.

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To integrate Islamic finance into its domestic economy, the country will introduce several key instruments like Murabaha (financing customers through instalment credit sales), Mudaraba (profit-sharing investments or fund attraction), Wakala (providing or attracting funds via agency agreements), Musharaka (financing clients through joint business activities), Salam and Istisna (financing through advance payments for goods) and Islamic leasing (Ijara), which will provide property under Sharia-compliant lease terms.

To support the adoption of these tools, the government will implement specific tax exemptions. While value-added tax (VAT) will not be applied to the markup on goods sold via Murabaha (Sharia-compliant financing structure, often called ‘cost-plus financing’), income generated from investment deposits will be tax-exempt as well. Furthermore, Islamic leasing agreements will be legally equivalent to financial leasing and traditional leasing.

To ensure systemic management and compliance with Sharia standards, the Central Bank of Uzbekistan will have its Islamic finance council. Additionally, banks providing these services will be required to form their own internal councils.

The panel, while operating under the Central Bank of Uzbekistan, will be tasked to develop industry standards, draft regulatory legal acts, provide clarifications on disputed issues, review contracts and internal documentation and ensure overall compliance with Islamic financial principles.

The latest policy move follows the Central Asian country’s Senate’s approval of the law on the introduction of Islamic banking activities in February 2026, marking a significant step toward modernising the nation’s banking sector.

Officials also proposed additional plans, such as establishing bodies like the Tashkent International Financial Centre and the International Centre for Digital Technologies. These will infuse Islamic finance mechanisms into the country and help Uzbekistan position itself more competitively in the global economy amid rising geopolitical uncertainty and intensifying competition for foreign investment. Officials see the country’s natural resources, economic potential, and ongoing reforms as the main engines for creating favourable conditions to attract international companies exploring new markets.

Tashkent International Financial Centre will likely serve as a platform for new investment flows. By 2030, it is projected to attract an additional USD 20-25 billion, contributing up to 1% of Uzbekistan’s annual GDP growth, in addition to creating as many as 15,000 jobs.

The centre will operate under a special legal regime, incorporating elements of the common law system of England and Wales, thereby allowing its governing bodies to adopt independent regulations. The platform will also have a Tashkent International Commercial Court and an International Arbitration Centre to handle disputes, while providing investors with benefits like tax incentives, simplified visa procedures, the capability of freely moving and repatriating capital, and access to modern financial instruments, including digital assets.

The International Centre for Digital Technologies, on the other hand, will operate under the “Enterprise Uzbekistan Brand.” The centre will function under a special legal framework, expected to remain in place until 2100. Within a regulatory sandbox, companies will be able to test new technologies, pay salaries in foreign currency, and operate under international labour and data standards.

The digital centre will also focus on AI, data processing, research and development, and startup support. By 2030, it is expected to attract up to 1,000 companies, create over 300,000 jobs and generate export revenues of up to USD 5 billion.

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Commercial Islamic banks operate as normal market-based financial institutions. However, their operational framework, compliant with Sharia principles, sets these entities apart from the non-Islamic segment. These values prohibit the interest payment, also known as riba, and outlaw purely speculative transactions.

Besides these contractual obligations, Islamic banks finance the same needs (SMEs, trade, housing, equipment and imports) as their conventional counterparts. Financing gets structured around contracts anchored in the real economy, such as Murabaha (cost-plus financing that avoids interest-based lending), Ijara (leasing arrangement), or Musharaka (risk- and profit-sharing partnership).

Also, Islamic banking is gaining prominence in Africa. UAE-based Dubai Islamic Bank (DIB) made the first move in 2022. Through its subsidiary “DIB Bank Kenya,” the venture announced the opening of a branch in Nairobi’s business district to strengthen SME financing and facilitate trade flows between Kenya and the UAE. DIB’s strategy has been to capitalize on the East African country’s growing economic hubs.

In Egypt, Abu Dhabi Islamic Bank (ADIB) has taken a different approach, by consolidating its longer-established and deeply rooted presence further. ADIB’s growing prominence in Egypt also makes the North African major a key entry point for other Gulf-based commercial Islamic financial entities, which combine elements such as retail banking, corporate financing and capital market operations in their product offerings.

However, alongside the expansion of Gulf banks, there is also evidence of a less obvious but equally significant phenomenon: the development of African players to dominate the sharia-compliant market while using the Gulf as a springboard to raise their profile.

Nyla Bank, a Ghanaian fintech described as a pan-African digital Islamic bank project, was selected as a semi-finalist in the Milken Motsepe Prize in FinTech in 2024 and is set to make a presentation at the Middle East and Africa summit organised by the Milken Institute in Abu Dhabi. This, therefore, also suggests that the sector’s development is being driven by African players with ties to the Gulf.

Apart from physical networks, some transactions evidence the increasing incorporation of commercial Islamic banks into African financing circuits, especially regarding syndicated murabaha operations and capital markets interventions. The aforementioned operations evidence a gradual, though targeted, level of integration into African economies. The commercial dimension is complemented by the second pillar of Islamic finance in Africa: development institutions.

Discussing Islamic banking’s growth in Africa, Saudi Arabia is also playing an important role. Jeddah-based Islamic Development Bank has now emerged as a dominant force for multilateral Islamic financing on the continent. Its operations focus on public projects, trade finance and risk mitigation, going well beyond traditional banking activities.

Meanwhile, Kuwait has largely concentrated its Islamic banking activities in North Africa, with Egypt emerging as the primary hub. Kuwait Finance House also enhanced its presence in 2025 by changing the name of Ahli United Bank Egypt to “KFH Egypt.” KFH Egypt is an entity that is fully sharia-compliant and has a considerable branch network. This is in addition to capital markets; an example is the issuance of sovereign sukuk with the involvement of KFH.

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Across global banking systems, artificial intelligence is moving from back-office optimisation to the heart of credit decision-making. The shift is subtle. There are no public announcements declaring that machines now approve mortgages. Yet increasingly, algorithms analyze income, spending patterns, behavioural signals, and even alternative data before a human ever sees an application.

So, the question is unavoidable: Are machines deciding who gets loans? And if so, what happens to human judgement?

The Quiet Expansion Of AI In Lending

Artificial intelligence is already deeply embedded in financial services.

“AI is transforming banking quite significantly, and the pace of adoption is fast,” Wahyu Jatmiko, Assistant Professor in Banking and Finance at the University of Southampton Business School, told International Finance.

He points to data from the Bank of England and Financial Conduct Authority showing that around 75% of UK financial institutions were using AI by 2024, up from 58% just two years earlier.

However, he explains, the heavy use remains concentrated in internal optimisation, cybersecurity and fraud detection. In underwriting specifically, adoption is more measured.

“Roughly around 15% of firms use AI directly in credit underwriting,” he estimates.

That figure may sound modest. But the deeper shift is structural.

“Even where it is not fully taking over, AI is increasingly embedded in the process,” Jatmiko says.

Instead of relying entirely on traditional credit bureau scores, systems now analyse real-time transaction data, behavioural patterns, and alternative datasets.

The result is not necessarily that machines approve all loans. Underwriting is becoming faster, more data-driven, and far more granular.

James Ekpa, an AI researcher at the Blockchain Technology Association for Black & Minority Ethnic Engineers (AFBE-UK), did not mince words.

“Yes, machines are increasingly deciding who gets loans today,” he told International Finance.

He sees a transformation from slow, manual processes to rapid, automated systems powered by machine learning algorithms.

Speed, consistency and scalability are among AI’s biggest advantages. Decisions can be made quickly. Models apply the given criteria uniformly. And, algorithms can analyse thousands of variables at a scale humans simply cannot match.

Efficiency, in other words, is no longer the differentiator. It is the baseline expectation.

Enhancement Or Replacement?

But, does faster mean better? And more importantly, does faster mean human judgement is fading?

“At the moment, I clearly see AI as enhancing human judgement rather than replacing it,” Jatmiko says.

He cites UK data suggesting that while about 55% of AI applications involve some automated decision-making, only around 2% are fully autonomous.

Creditworthiness, he argues, is not merely about predicting default probabilities. It involves context, borrower circumstances, regulatory constraints, and sometimes ethical considerations.

AI excels at analysing large datasets, document reading, income verification, and affordability calculations. In that sense, Jatmiko says, it acts like a powerful analyst. But final approvals, particularly for complex or high-value loans, still rest with humans.

Ekpa agrees that the human role is evolving rather than disappearing. Loan officers today increasingly review edge cases and borderline applications. They handle complex deals. They explain decisions to customers. They monitor model outputs and escalate anomalies.

The job is changing. It is becoming supervisory. That may be the real transformation.

When Context Meets Code

The limits of automation become clearer when qualitative factors enter the picture.

Jatmiko describes a hypothetical but realistic scenario: a small business reporting temporary losses due to a supply chain shock while holding strong long-term contracts. A human underwriter may interpret the broader narrative and take a forward-looking view. An algorithm trained primarily on historical default data might simply detect recent losses and flag high risk.

“There is research showing a mismatch between what AI models consider important and what human loan officers see as meaningful indicators of creditworthiness,” he explains.

Humans can contextualise. They can sometimes account for structural disadvantages when justified by circumstances. AI, by design, optimises patterns found in historical data. That difference is subtle. But in lending, subtle differences affect livelihoods.

The Question Of Bias

Advocates of AI argue that machines eliminate prejudice. Algorithms do not discriminate intentionally. They do not favour friends. They apply rules consistently. And that consistency is powerful.

But, consistency applied to flawed historical data can create new problems.

“AI can reduce certain types of human bias, but it can also embed and even amplify systemic bias,” Jatmiko explains.

If past lending patterns reflected unequal treatment of certain demographic groups, models trained on that data may internalise those patterns as objective signals of risk.

Ekpa echoes this concern. One of the primary risks, he notes, is bias amplification. If historical data contains discrimination, models may encode and intensify it.

Transparency is another issue. Complex models can be difficult to explain. Borrowers denied credit may receive little more than a generic explanation.

“Opacity raises regulatory and consumer trust concerns,” Ekpa warns.

Then there is model drift, when changing economic conditions gradually degrade model performance. Without continuous monitoring, systems may misprice risk during volatile periods.

In short, bias does not disappear. It changes form.

Accountability In An Algorithmic Age

If an AI-driven system denies a borrower unfairly, who is responsible? The answer is not always clear. Multiple actors are involved – AI manufacturers, developers, third-party providers, and lenders themselves.

However, both experts converge on one principle: accountability ultimately rests with the financial institution.

Ekpa says AI is a tool, not a legal entity. Financial institutions remain responsible for the models they deploy, the data they use, and the governance frameworks they maintain.

Jatmiko does not overcomplicate it. If a loan decision turns out to be unfair, the algorithm cannot be the one blamed. The bank chose to use it, so the bank carries the responsibility. That means senior leaders cannot hide behind technical language. They have to stand behind the outcomes.

He stresses that human oversight is not optional, especially for complicated or sensitive cases. Models need regular checks. They need to be tested for bias. They need proper audit trails. Otherwise, problems build quietly.

He also worries about something bigger. If many banks start depending on the same AI providers, risk can pile up across the system. One flaw could affect more than just one institution. Efficiency is important. But, it cannot come before accountability.

The Islamic Finance Lens

From an Islamic finance point of view, this is not just a technical debate. It goes deeper than that. Islamic banking is guided by Maqasid al-Shariah, ideas around justice, fairness, and social welfare. Lending is not only about numbers on a balance sheet. It carries a social responsibility.

Yes, AI can make processes smoother. Faster approvals. Cleaner risk models. That part is clear. But Jatmiko flags something more subtle. If the data used to train these systems reflects a past where small businesses were routinely sidelined, the algorithm may quietly repeat that history.

And if that happens, the technology could end up working against the very goals Islamic finance is supposed to protect. Not intentionally, but just by following patterns.

Aligning AI with ethical principles requires intentional intervention in model design and governance. It may require bringing social scientists into AI development processes. It may demand stronger oversight, particularly when tools are sourced from third-party providers.

Technology alone does not guarantee fairness. Design choices matter.

Possibility Of A Hybrid Future

So, where is banking headed? Fully automated lending systems may emerge in low-risk, low-value segments. Routine cases can be processed at speed and scale. But both experts see the broader future as hybrid.

Ekpa believes competitive advantage will come from institutions that combine AI’s analytical power with human judgement, rather than eliminating one in favour of the other.

Jatmiko similarly expects automation to expand, but insists that human supervision will remain essential, especially for complex or high-impact decisions.

Human-in-the-loop processes are already becoming common. Algorithms analyse. Humans validate. Decisions are checked before final approval. Perhaps, the future banker will not be replaced, but repositioned.

The Big Question

For borrowers, the shift may be invisible. Applications are approved faster. Rejections arrive more quickly, too. What changes quietly, beneath the surface, is how those decisions are made.

Is human judgement fading? Or simply moving further upstream, designing and supervising the systems that now perform the analysis?

The rise of the AI loan officer is not dramatic. No headlines are announcing the end of human bankers. Instead, there is gradual integration, more data, faster models, and shorter decision times.

Machines are increasingly involved. That much is clear. But whether they ultimately decide, or merely assist, depends less on technological capability and more on governance choices.

Banks can treat AI as an efficiency engine. Or, they can treat it as a tool that augments, rather than overrides, human responsibility. The distinction may determine not only how loans are approved, but how trust in the financial system evolves in the years ahead. And trust, unlike data, cannot be automated.

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This gap exists within Australia’s USD 4.3 trillion superannuation system, where Shariah-compliant options remain limited. Rising mortgage rates, reaching around 5.5% in late 2025, have further increased the challenge. Recognising this need, Md. Rokibul Islam founded Meezan Wealth in 2020 to provide trusted, Shariah-compliant solutions across home finance, superannuation, and investments.

His vision was grounded in three core values—trust, ethical integrity, and sustainable growth. The objective was not simply to create financial products, but to establish a platform where faith and financial well-being could coexist, while remaining committed to innovation and ethical finance.

Meezan Wealth’s super and investment solutions are supported by internationally recognised Shariah governance frameworks, including certification aligned with AAOIFI standards and advisory oversight from SRA Consulting in Malaysia.

In January 2026, the company was awarded the “Most Innovative Shariah-Compliant Financial Solutions Provider – Australia 2025” at the International Finance Awards. At the same ceremony, Founder and CEO Rokibul Islam was named Best “Emerging CEO – Islamic Finance – Australia 2025.”

These accolades reflect not only organisational achievement but also the emergence of Australia as a developing hub for Islamic Finance. Under Islam’s leadership, Meezan Wealth has established itself as a pioneer, building solutions that meet global compliance standards while serving local community needs.

Transforming Retirement Through Halal Superannuation

Superannuation has historically presented one of the most significant barriers for Muslim investors. Conventional funds often allocate capital to non-compliant sectors, leaving many individuals uncertain about their retirement savings.

Meezan Wealth addressed this gap by introducing Halal Superannuation through the APRA-regulated fund called Super Simplifier. All investments undergo rigorous screening by IdealRatings and are certified by the International Shariah Research Academy (ISRA), ensuring alignment with global Shariah standards.

And the company’s performance proved one fact: ethical investing need not come at the expense of returns. As of June 2025, Meezan Wealth’s “Islamic Ethical Growth Option” delivered 11.21%, while the longer-term strategies, including “Islamic Ethical Growth Plus,” achieved 11.32 % over three years. These outcomes reinforce the viability of Shariah-compliant investing as both principled and competitive.

“In addition to performance, members benefit from low-cost structures, flexible contribution options, and integrated optional insurance offerings, ensuring comprehensive financial security,” Meezan Wealth told International Finance.

Addressing The Home Finance Gap

Home ownership is essential for financial stability, yet traditional interest-based mortgages have long been a barrier for Muslims. Meezan Wealth addressed this by introducing Islamic home finance based on the globally recognised Ijarah model, which replaces interest with a transparent lease-to-own structure.
Clients hold the property title while repayments combine rental and equity components, with the rental portion decreasing as ownership grows.

Modern features such as offset accounts, redraw facilities, and flexible repayment options ensure these solutions meet the practical needs of Australian households. For many clients, this has enabled home ownership for the first time without compromising their values.

Building The Future Of Ethical Finance In Australia

More than representing the success of a single company, Meezan Wealth’s growth reflects the maturation of Islamic Finance within Australia. By providing integrated solutions across home finance, superannuation, and investments, the firm has created a comprehensive ecosystem previously unavailable to Muslim investors.

The company continues to expand its reach nationally, driven by a clear mission of empowering individuals and families to build wealth in a manner consistent with their values. As awareness grows and demand increases, Meezan Wealth is positioned to play a central role in shaping a more inclusive and ethical financial system.

The journey from struggle to solution is still unfolding. Yet Meezan Wealth’s progress demonstrates what is possible when financial innovation is guided by purpose. In doing so, it is helping redefine the future of finance in Australia, one where faith, ethics, and financial prosperity move forward together.

The post Meezan Wealth: The force behind Australia’s Islamic Finance growth appeared first on International Finance.

Even with its increasing popularity, a lot of investors still think it’s complicated or restrictive. Some people think it only matters to Muslim investors, while others think its performance is inferior to that of traditional markets.

The truth is different. Asset-backed strategies have flourished in industries like real estate, logistics, healthcare, and technology, which have experienced significant growth under Sharia principles and are therefore appealing to a far wider range of investors.

Sharia finance focuses on structure rather than limitations. Since global markets are dealing with uncertainty, the emphasis on openness, moral investing, and risk sharing makes it particularly pertinent today.

Competitive Asset Class

The idea that Sharia finance is a conservative, sluggish industry is out of date. These days, sharia-compliant investments are dynamic and span a variety of asset classes, including exchange-traded funds, stocks, sukuk, and real estate investment trusts.

Their competitiveness is more significant. In the last ten years, Sharia-compliant stocks in the United Arab Emirates (UAE) have produced returns that are on par with, and occasionally better than, those of traditional indices.

The Sharia Index of the Dubai Financial Market (DFM) is one example. During financial downturns, it has outperformed general market trends by avoiding highly leveraged companies, providing investors with a degree of protection against crises that frequently result from excessive debt.

The Islamic bond substitute known as sukuk has also gained popularity, offering yields comparable to those of conventional bonds while taking advantage of the UAE’s sound economic policies and state-sponsored infrastructure initiatives. Because they are asset-backed, Sukuk are protected from the increase in interest rates that can affect traditional bonds.

Expats And Sharia Investments

The idea that Islamic finance is only available to Muslim investors is among the most pervasive misconceptions about it. Nothing could be further from the truth than that. Anyone searching for moral, interest-free financial products can make sharia-compliant investments, and the United Arab Emirates, which is home to one of the biggest expat communities worldwide, provides a flourishing environment for these kinds of opportunities.

A wide variety of Sharia-compliant investment options are available to foreigners living in the United Arab Emirates, such as equity portfolios, real estate funds, and exchange-traded funds (ETFs) listed on prominent exchanges such as DFM and Nasdaq Dubai.

In contrast to certain nations where nationality or residency status restricts access to Islamic financial products, the regulatory framework in the UAE facilitates seamless participation. Additionally, investors can confirm compliance by using financial apps that search for compliant stocks, investing in mutual funds that adhere to Sharia law, or seeking certification from reputable Sharia boards.

The post Rethinking Islamic Finance: Breaking free from outdated stereotypes appeared first on International Finance.