Standard Chartered has said that Saudi Arabia has the fundamentals needed to strengthen its position as a global hub for Islamic capital flows, driven by the development of its capital markets and the objectives of Vision 2030.
In a report, titled “Islamic Banking for Financial Institutions: The Islamic Finance Connector Era,” the bank said that global Islamic finance assets are approaching $6 trillion. At the same time, only 6 percent of global sukuk capital currently reaches the South Asia and Africa markets, highlighting significant opportunities to expand cross-border financing and investment.
The report explained that shifts in trade patterns, rising regional investment activity, and advances in digital infrastructure are reshaping the role of Islamic finance. Rather than serving solely as a traditional financing tool, Islamic finance is increasingly becoming a mechanism for connecting capital with trade and investment opportunities across global markets.
It added that Saudi Arabia, through the development of its capital markets, the expansion of investments in infrastructure and strategic sectors, and the growth of its Islamic finance ecosystem, is strengthening its role in supporting regional and international investment flows in alignment with the goals of Vision 2030.
“Islamic finance is becoming a critical enabler of cross-border connectivity. As its role in facilitating trade, investment and capital flows, continues to grow, financial institutions must place Islamic finance firmly on their strategic agenda,” said Khurram Hilal, CEO of Group Islamic Banking at Standard Chartered.
“As trade routes become increasingly interconnected, institutions need recognized financing structures and operational capabilities that enable Shariah-compliant capital to move seamlessly across borders.”
“The challenge for many markets today is not a shortage of liquidity, but how to connect that liquidity with opportunity more effectively across borders,” Hilal added. “Financial institutions that build trusted connections between capital, markets, and digital infrastructure will be best positioned to support sustainable growth across emerging economies.”
As for Mazen Bunyan, CEO of Standard Chartered in Saudi Arabia, he said that Saudi Arabia possesses the fundamentals needed to play a pivotal role in the next phase of Islamic finance, building on the objectives of Vision 2030, ongoing financial sector reforms, and deeper integration with international markets.
These factors are expected to enhance the Kingdom’s position as a hub for Islamic capital flows and for trade and investment between the Gulf Cooperation Council (GCC) countries, Asia, and Africa.
The report noted that growing trade links between the GCC, Asia, and emerging markets are creating new opportunities for Shariah-compliant trade finance, while also supporting cross-border investment and directing capital toward high-growth markets.
