New Standard Chartered report highlights Bahrain’s role

New Standard Chartered report highlights Bahrain’s role in connecting Islamic capital with the next generation of growth opportunities

• New report finds only 6% of global sukuk capital reaches South Asia and Africa, highlighting a significant opportunity to strengthen cross-border Islamic finance 

• Bahrain’s established Islamic finance ecosystem and regulatory leadership position the Kingdom to support the next phase of cross-border Islamic finance connectivity

As Bahrain continues to strengthen its position as a leading centre for Islamic finance, a new Standard Chartered report highlights a significant opportunity to deepen cross-border connectivity between Islamic capital and high-growth markets. Despite Islamic finance assets approaching USD6 trillion globally, only 6% of global sukuk capital currently reaches South Asia and Africa, underscoring the need for stronger financing and investment corridors to unlock the industry’s next phase of growth.

According to Islamic Banking for Financial Institutions: The Islamic Finance Connector Era, the next phase of Islamic finance will increasingly be defined by its ability to mobilise liquidity, connect regions and facilitate investment across emerging economic corridors. Achieving this will require stronger financial, trade and digital connectivity to enable Islamic capital to move more efficiently across borders.

These findings are particularly relevant to Bahrain, one of the pioneers of modern Islamic finance, whose well-established regulatory framework and sophisticated financial services ecosystem have helped shape the industry’s development for decades. As regional investment corridors continue to evolve, Bahrain is well positioned to strengthen cross-border Islamic finance by connecting capital with trade and investment opportunities across the GCC, Asia and Africa. This closely reflects the report’s conclusion that stronger connectivity between capital, trade and investment will define the next phase of Islamic finance growth.

Khurram Hilal, CEO, Group Islamic Banking, Standard Chartered, said: “Islamic finance is becoming a critical enabler of cross border connectivity. As its role in facilitating trade, investment and capital flows continues to grow, institutions need recognised financing structures and operational capabilities that enable Shariah compliant capital to move seamlessly across borders as trade routes become increasingly interconnected.” 

He added: “The challenge for many markets today is not a shortage of liquidity, but how to connect that liquidity with opportunity more effectively across borders. Financial institutions that build trusted connections between capital, markets and digital infrastructure will be best positioned to support sustainable growth across emerging economies.”

Shaikha Tareef, Acting Chief Executive Officer, Standard Chartered Bahrain, said:

“Bahrain has long been recognised as a centre of excellence for Islamic finance, supported by a strong regulatory framework, deep market expertise and a longstanding commitment to innovation. As cross-border trade and investment continue to evolve, the Kingdom is well positioned to help connect Islamic capital with emerging opportunities across the GCC and beyond, reinforcing its role in supporting the continued growth and development of the global Islamic finance industry.”

The report highlights rapidly evolving trade corridors between the GCC, Asia and other emerging markets as creating new opportunities for Islamic trade finance, cross-border investment and capital mobilisation. It also identifies growing demand for private credit, infrastructure finance, digital assets and tokenisation as key areas supporting the next phase of Islamic finance growth.

With one of the world’s leading international Islamic banking franchises, Standard Chartered supports clients across these evolving trade and investment corridors through Shariah-compliant solutions, deep market connectivity and cross-border capabilities, helping connect capital with opportunity across the markets it serves.