Islamic FinTech is a branch of financial technology that operates in line with Sharia principles, emphasizing ethics, transparency and social responsibility. While rooted in Islamic finance, it is increasingly attracting non-Muslims due to its strong alignment with environmental, social and governance (ESG) values. Like ESG-compliant FinTech, Islamic FinTech promotes sustainability, financial inclusion and ethical governance, with the added dimension of faith-based compliance overseen by Sharia supervisory boards.

The sector is growing rapidly, with leading markets including Saudi Arabia, Iran, Malaysia, the UAE, Türkiye and Indonesia, together accounting for over 80% of Islamic FinTech transaction volumes in OIC countries. The market is projected to reach $179 billion by 2026, outpacing global FinTech growth. Most Islamic FinTech currently focus on payments, lending, wealth management and digital banking, while social finance covering Zakat, Sadaqah and Waqf represents a major untapped opportunity.

Islamic FinTech also plays a vital role in financial inclusion, particularly in Muslim-majority regions with large unbanked populations. Although regulation remains country-specific, growing regulatory sandboxes and standards such as those from AAOIFI are supporting sustained global expansion.