The latest statistical data issued by the Saudi Central Bank (SAMA) showed remarkable growth in the Islamic finance sector in the Kingdom, as the value of financing contracts compliant with the provisions and principles of Islamic Sharia rose to new record levels of SAR 2,709.3 billion by the end of the third quarter of 2025. This figure represents a qualitative leap of 13% compared to the same period of 2024, reflecting the continued momentum in demand for Islamic financial products.
Quarterly and annual growth details
The statistical bulletin revealed that financing contracts not only witnessed annual growth but also recorded a quarterly increase compared to the previous quarter, rising by 2%, equivalent to an increase of SAR 63.2 billion in just three months. These figures confirm the continued pace of lending and financing in the Saudi market, supported by a stimulating economic environment and robust banking regulations that ensure the stability of the financial sector.
The dominance of Murabaha and Tawarruq
In terms of contract distribution, Murabaha and Tawarruq structures accounted for the lion's share of total financing, representing approximately 90% of the total value of outstanding contracts. These structures are the most common and in-demand in the Saudi market due to their flexibility and suitability to the needs of both individuals and companies. The Islamic finance portfolio also includes a diverse range of other products that cater to various needs, such as Ijarah (leasing), Mudaraba (profit-sharing), Musharaka (partnership), and Sharia-compliant credit cards.
Economic context and Vision 2030
This rapid growth comes within the context of the major economic transformations taking place in Saudi Arabia under the umbrella of Vision 2030, specifically within the objectives of the Financial Sector Development Program. The Kingdom seeks to solidify its position as a leading global center for Islamic finance. Structural reforms and regulatory frameworks implemented by the central bank have contributed to strengthening confidence in the banking system, encouraging the expansion of financing to include vital sectors such as housing, small and medium-sized enterprises (SMEs), and infrastructure.
Importance and expected impact
This surge in financing contracts carries significant economic implications, indicating the availability of liquidity necessary to support the growth of the non-oil private sector, a key pillar of economic diversification. Furthermore, the growth of Islamic finance reflects increased financial literacy and a growing preference among consumers and investors for Sharia-compliant products. This upward trend is expected to continue, further deepening the Saudi financial market and attracting more foreign investment interested in the rapidly expanding global Islamic banking sector.
