Ecofin Agency - As global Islamic finance aims for $6 trillion in assets during this year, 2026, world-renowned expert Muhammad Zubair Mughal—CEO of AlHuda CIBE (UAE) with over 20 years of experience in Sharia-compliant financial engineering—analyses how the development of debt securities (Sukuk) and FinTech within the sector can revolutionise infrastructure financing and financial inclusion. This represents a decisive ethical and digital turning point for Africa. 

Ecofin Agency:Mr Mughal, it is a pleasure to speak with you again. Your latest projections suggest that global Islamic finance assets are on track to exceed $6 trillion by 2026, following a very strong 2025, when assets reached approximately $5.2 trillion. In your view, does this represent a simple quantitative expansion of the market, or a more profound structural shift in how the global financial system operates?

Muhammad Zubair Mughal: It is a pleasure to be here. To understand this growth, we must look at the foundation we have built. At the end of 2025, the industry reached a significant milestone of $5.2 trillion with over 6,000 Islamic financial institutions—including banks, Takaful companies, and capital market entities—operating in over 20 countries. This is not merely a numbers game; it is a fundamental shift toward an ethical, asset-backed financial architecture. Currently, Islamic banking remains the backbone, accounting for about 72% of total assets, but we are seeing a meaningful rebalancing across geography and sectors. The emergence of the Sukuk market, which now holds an 18% share, and the rapid growth of Islamic FinTech, which is expanding at double-digit rates, signal that the industry is transitioning from a niche regional alternative to a systemically important component of global finance.

Ecofin Agency:That geographical rebalancing is particularly evident in Africa. You have mentioned that while the GCC and Asia hold over half of all assets, Africa is the fastest-growing frontier. However, when we look at the African Finance Corporation's assessment of regional resources at $4 trillion, there appears to be a gap in the extent to which these resources are currently Sharia-compliant. Do you believe Africa is genuinely ready to absorb the full potential of these Islamic solutions?

Muhammad Zubair Mughal: Africa is indeed a beautiful continent with immense potential, but the current utilisation of Islamic instruments like Sukuk remains low, less than 5% of the global total. We segregate the African market into four key regions. East Africa, including Ethiopia, Kenya, and Somalia, has developed a robust infrastructure. West Africa is also showing great promise, particularly in Nigeria, which is a major driver with its population of over 220 million. Then we have North Africa, where countries like Morocco and Algeria are making significant strides. The potential is there, but the readiness varies. For Africa to absorb these opportunities, it must move beyond traditional banking and embrace Sukuk as a tool for bulk funding. Governments can utilise these instruments for large-scale infrastructure projects such as roads, airports, and healthcare facilities.

Ecofin Agency:You highlighted regulation as a significant hurdle. You’ve worked with several governments, including Somalia and various Francophone nations, to design these frameworks. Could you explain why the regulatory landscape in Africa is so complex, particularly when comparing the Common Law and Civil Law systems?

Muhammad Zubair Mughal: This is a critical point that often slows down progress. In Africa, we deal with two primary legal heritages. In Anglophone countries following the Common Law, the system is generally more flexible in accommodating new financial products. However, in Francophone West Africa—where countries like Senegal, Mali, and the Ivory Coast have Muslim populations reaching 90% or higher—the Civil Law system presents more bureaucratic hurdles. To introduce a new Sharia-compliant product, you often have to go through extensive parliamentary debates to change existing banking laws. This makes it a difficult path to navigate. Despite these hurdles, we are working at the industry level to set up the necessary infrastructure. AlHuda CIBE has been active in setting up Takaful (Islamic insurance) companies in Nigeria, the Ivory Coast, Ethiopia, and Tanzania to ensure that the entire ecosystem, not just banking, is available to the people.

Ecofin Agency: Speaking of reaching people, you have been a strong advocate for Islamic FinTech as a solution to financial inclusion. In regions where bank branches are rare but mobile phone penetration is near 90%, how realistic is it to expect technology to bridge the gap for those in remote areas?

Muhammad Zubair Mughal: It is not just realistic; it is the most effective solution we have. Traditional financial inclusion in many African markets is as low as 20% to 30%, yet almost everyone has a mobile device. Even an old GSM device, not necessarily a smartphone, can be used for Sharia-compliant transactions. By offering financial services via mobile technology, our outreach becomes far superior to plain branch-based banking. What is even more important is the trust factor. Many people in rural areas voluntarily choose to exclude themselves from the formal sector due to religious beliefs. When we provide a Sharia-compliant FinTech solution, it bridges the trust gap. We are seeing Islamic FinTech platforms for crowdfunding, digital payments, and micro-investments becoming game-changers for small businesses and individuals in remote regions.

Ecofin Agency:Finally, for these regulations and technologies to work, you need people who understand them. You’ve travelled to over 30 African countries and have noticed a massive human capital gap, specifically in Francophone Africa, where you estimate 25,000 professionals are needed. How do we address this shortage for the long term?

Muhammad Zubair Mughal: We are currently relying on a short-term approach where conventional finance professionals take crash courses to fill roles. While this helps in the immediate sense, it is not sustainable. For the industry's long-term development, we must adopt a long-term approach. We need universities to establish dedicated Bachelor’s and Master’s degree programs in Islamic banking and finance. At AlHuda CIBE, we are doing our part through advisory services and digital learning programs in multiple languages—including French, English, and Arabic—to reach professionals in over 40 countries each year. Our role is to act as a bridge, providing the training and advisory services needed so that African stakeholders can confidently jump into the Islamic finance landscape. The goal is to produce a new generation of professionals who don't just understand the mechanics of finance, but the ethical and social justice principles that define our industry.

Ecofin Agency:There is clearly a significant opportunity for Islamic finance to expand across Africa, particularly given the large Muslim populations in Northern and Western African countries. However, you have often highlighted that regulatory frameworks remain a primary hurdle. Could you elaborate on these specific regulatory challenges and what else stands in the way of sustainable development for the industry?

Muhammad Zubair Mughal: The regulatory challenge is indeed the most significant barrier because adopting Islamic finance requires a fundamental shift in a country's legal landscape. Beyond just the laws themselves, we face the challenge of ensuring the availability of Sharia-compliant funds and establishing a sustainable framework for development. There is also a persistent lack of awareness and a need for stronger linkages with international Islamic financial institutions. To truly address these issues, we must consider the entire ecosystem, from legal statutes to the practical availability of compliant liquidity in the market.

Ecofin Agency:Your organisation has been very vocal about the rapid growth of Sukuk, or Islamic bonds, in markets like Tanzania, Kenya, and Zambia. Given your work in business intelligence within this sector, what lessons should African governments and regulators take from these experiences? How can they better utilise the Sukuk landscape to meet their funding needs?

Muhammad Zubair Mughal: There is a massive need for the development of the Sukuk industry in Africa because Sukuk provides bulk funding that allows governments to access international markets competitively. Governments in developing African nations can raise these funds specifically for infrastructure projects, such as roads, airports, healthcare facilities, and educational facilities. For example, as Nigeria moves forward with its $2 billion fibre-optic investment supported by the AFDB, Sukuk could serve as a vital tool for financing such infrastructure. If we look at Asian markets or GCC countries like the UAE and Qatar, over 50% of Sukuk are issued by governments to enhance their international presence and diversify their funding. Currently, many African governments rely heavily on the World Bank, the IMF, or Eurobonds. Still, Sukuk offers a cost-effective, competitive alternative that diversifies funding sources while supporting tangible domestic growth.

Ecofin Agency: Currently, about 70% of Islamic financial assets are concentrated in banking, while sectors such as Takaful (Islamic insurance), capital markets, and FinTech are growing much more slowly. Based on your global experience, what regulatory improvements are necessary to help African countries benefit from these other promising segments of Islamic finance?

Muhammad Zubair Mughal: At AlHuda CIBE, we engage with regulators at multiple levels to design these necessary frameworks. For instance, we are currently working with the government of Somalia and several Francophone African countries to create their specific regulations. At the industry level, we work with banks and cooperatives to define product structures and establish the necessary infrastructure. We are also very active in the insurance sector; we have helped set up Takaful companies in Nigeria, Ethiopia, the Ivory Coast, and Tanzania. To see growth beyond banking, regulators must create specific guidelines for these segments, and we provide that bridge by working directly with Ministries and Central Banks to launch these specialised products.

Ecofin Agency:You have vigorously defended the role of Islamic FinTech in your recent communications. In many African countries, such as Niger, the Ivory Coast, and Somalia, a large portion of the population lives in remote areas with limited access to physical banks. How realistic is it to believe that Islamic FinTech can significantly improve financial inclusion in these regions?

Muhammad Zubair Mughal: It is highly realistic because FinTech allows us to provide Sharia-compliant services through technological applications. While traditional financial inclusion in African markets is often only 20%-30%, about 90% of the adult population has a mobile device. By offering financial services through mobile technology, our outreach becomes much more effective than traditional banking. In rural areas, a person might be 50 kilometres away from the nearest branch, but they are only a few clicks away from their finances via their phone. This doesn't even require a smartphone; even a basic GSM device is sufficient for these services. The acceptability of these services increases significantly when they align with the religious beliefs of the population, making technology a powerful tool for financial inclusion.

Ecofin Agency:Effective regulation requires a deep understanding of the products being regulated, yet many people still struggle to understand how Islamic finance operates without interest rates or how to ensure funds aren't used for illicit activities. What are the human capital gaps you’ve identified in Africa, and why is it so important to address them now?

Muhammad Zubair Mughal: Before addressing the gap, it is essential to remember that Islamic finance is a system that can be utilised by everyone, Muslim and non-Muslim alike. In Africa, we must introduce it as a solution for all. Regarding the knowledge gap, we currently see a short-term approach in which conventional finance professionals take short courses to meet immediate needs. While this helps in the interim, it isn't enough for long-term sustainable development. We need a long-term approach that involves producing Bachelor’s and Master’s degree holders with specialised training in Islamic banking and finance. Adopting this academic rigour will provide the industry with the "new shot" of professional energy it needs to accelerate.

Ecofin Agency:With global Islamic finance assets approaching $6 trillion, what is AlHuda CIBE's specific role in supporting African stakeholders at this stage? What can your organisation offer to those looking to enter the Islamic finance market?

Muhammad Zubair Mughal: We act as a primary advisor to both governments and the private industry. For the general public and aspiring professionals, we offer internship programs—both physical and virtual—in several languages, including English, French, Arabic, and Russian. We also provide six distinct digital learning programs, ranging from 4 months to 1 year, for those who want to enter the industry professionally. Every year, we conduct physical workshops, research seminars, and webinars in more than 40 countries. I have personally travelled to more than 30 African countries to drive these initiatives because our mission is to provide the training, advisory services, and market development necessary for African nations to thrive in the global Islamic financial industry.

Interview by Idriss Linge