The Philippines' Islamic finance market remains small despite recent regulatory and funding milestones, according to a report by Philstar Biz , citing Fitch Ratings.
Fitch noted that the country's Islamic banking assets and sukuk issuance are still negligible compared to regional peers like Malaysia and Indonesia. The broader Association of Southeast Asian Nations (ASEAN) Islamic finance industry surpassed $1 trillion in the first quarter of 2026.
The report highlights that while the Philippines has taken steps such as the Islamic Banking Act and the issuance of a sovereign sukuk, the market remains nascent. Fitch expects growth to be gradual, constrained by limited awareness, infrastructure, and Shariah-compliant asset availability.