The Islamic finance market is expected to grow at an annual rate of over 10% within the next five years.

```html

While the Islamic finance market is projected to record an annual compound growth rate of over 10% until 2029, it is noted that one of the main reasons for this growth is the ethical investment basis of Islamic finance.

ISLAMIC FINANCE ASSETS WILL REACH 5 TRILLION DOLLARS

Once primarily found in countries with a majority Muslim population, Islamic finance is now spreading worldwide. In this context, it is expected that Islamic finance assets will reach approximately 5 trillion dollars over the next year. Over the past decade, Islamic finance has grown at an annual rate of 10-12%, encompassing various sectors including banking, capital markets, money markets, and insurance. Countries like the United Kingdom, South Africa, and even Luxembourg, where the Muslim population is not predominant, are getting involved in this process with financial products that comply with the ethical principles offered by Islamic finance.

GOAL OF 10% GROWTH IN 5 YEARS

According to the report "Islamic Finance Market Size and Share Analysis - Growth Trends and Forecasts," it is projected that the Islamic finance market will record an annual compound growth rate of over 10% from 2024 to 2029.

It is stated that one of the main reasons for this growth is the ethical investment basis of Islamic finance.

Islamic finance attracts the interest of both Muslim and non-Muslim investors thanks to the increasing global awareness of ethical investment principles.

ISLAMIC FINANCE MARKET IS ALSO ATTRACTING INTEREST BEYOND THE MUSLIM WORLD

With its inherent values, the Islamic finance market continues to attract interest beyond the Muslim world.

The United Kingdom stands out as a leading country in the adoption of Islamic finance. Particularly, London is prominently positioned as an important center for Islamic banking and finance. The UK government has repeatedly attracted international investment interest by issuing state sukuk (Islamic bonds).

South Africa is also prominent in this market as banks offer Islamic finance-compliant financial products that cater to both Muslims and non-Muslims. Luxembourg became the first Eurozone country to issue sukuk worth 200 million euros with a 5-year maturity in September 2014. This positioned Luxembourg as a significant contributor to facilitating cross-border Islamic financial transactions in the Eurozone. This global spread once again highlights the dynamic nature of the sector and its ability to appeal to various classes of investors regardless of location or belief.

THE FATE OF THE SECTOR IS CHANGING

As of last year, the total value of financial assets compliant with Islamic rules is estimated to be around 2 trillion dollars. These assets are expected to grow significantly and reach 2.5 times the 2023 value by 2026.

Like many sectors, Islamic finance is evolving with the rise of technology. Fintech and blockchain are particularly notable trends that are changing the fate and future of the sector.

It is stated that blockchain technology has the potential to significantly transform Islamic finance by improving transparency and reducing uncertainty in transactions.

"ISLAMIC FINANCE IS ALSO ALIGNED WITH THE UN'S SUSTAINABLE DEVELOPMENT GOALS"

Prof. Dr. Metin Toprak, a faculty member of the Department of Economics at Istanbul Sabahattin Zaim University, stated in his assessment that Turkey has the potential to be an important global player in the rise of Islamic finance on the global stage, given its geographical location and cultural structure, particularly in the region referred to as "Eurasia," which is the intersection of Africa and Asia.

Toprak emphasized that Turkey needs to develop its potential to be an attraction center in the region to strengthen its regional role and emerge as a global actor, noting that the environmentally friendly, ethical, and transparent approach of Islamic finance is also aligned with the United Nations' sustainable development goals.

Prof. Dr. Metin Toprak stressed that in order to fully realize this potential, certain obstacles need to be overcome, stating: "Among the main issues hindering the spread of Islamic finance in Islamic countries are the complexities in the regulatory framework and the burden of dual regulation, lack of transparency and trust, and the low level of awareness among economic actors regarding this issue. The functioning of capital markets not being in line with international standards and transparency is at the forefront. This situation reduces the confidence of both domestic and foreign investors in the sector and thus limits growth. For Turkey to take a more active role in this area, it is necessary to simplify the regulatory framework, increase transparency, and conduct studies to raise awareness about the sector. It is a priority for Turkey to operate in harmony with international standards and institutions to emerge as a regional and global actor in Islamic finance and to strengthen its position."