Event: Standard Bank

A decade of growth and innovation. Standard Bank Shari’ah Banking continues to lead South Africa’s Shari’ah‑compliant finance sector, delivering asset‑backed, values‑driven solutions that support real economic impact. Shari’ah-compliant finance gains momentum in South Africa With renewed sovereign sukuk issuance and steady portfolio growth, Shari’ah Banking is carving out a deeper presence in the financial system. Its long-term impact will depend on inclusion, innovation and market depth. Shari’ah Banking and investment have long occupied a defined, but contained, space within South Africa’s financial system. For decades, Shari’ah-compliant products have served a committed client base seeking alternatives to interest-based finance. What is shifting now is not simply demand within that community, but the broader relevance of Islamic finance in an era marked by ethical scrutiny, ESG fatigue and persistent financial exclusion. At its core, Islamic finance is structured around a different conception of money and risk. Interest is prohibited. Transactions must be linked to tangible assets or identifiable economic activity. Excessive uncertainty and speculation are restricted. Profit and risk are shared between contracting parties. In practice, this produces financing models that are asset-backed and more directly tied to the real economy than many conventional instruments. The question for South Africa is whether these principles translate into structural relevance, or whether Shari’ah Banking remains a parallel offering operating within the same macroeconomic constraints as the wider system. South Africa’s financial sector is sophisticated, concentrated and tightly regulated. Shari’ah Banking operates within that framework, not outside it. The country issued its first sovereign sukuk in 2014, a US$500 million international offering that was heavily oversubscribed and signalled strong global appetite for Shari’ah-compliant exposure to the country. Nearly a decade later, the state returned to the market with a R20.4 billion domestic sukuk issuance in 2023, suggesting a renewed effort to deepen Islamic capital instruments…