Bahrain's Islamic Banking Assets to Top $100 Billion by 2027

Islamic banking assets in Bahrain are expected to exceed $100 billion by 2027, according to Fitch Ratings, as the sector continues to expand faster than conventional lenders.

The credit ratings agency said Islamic banks now account for 42% of Bahrain's domestic banking assets, underscoring the sector's growing role within the Kingdom's financial system.

According to Fitch, Islamic lenders have continued to outperform their conventional counterparts in terms of growth, with the sector steadily increasing its share of the domestic banking market. The agency expects this momentum to push total Islamic banking assets beyond the $100 billion mark over the next two years.

The forecast highlights Bahrain's position as one of the region's leading centres for Islamic finance, with Shariah-compliant banking continuing to play an increasingly significant role in the country's financial services industry.