Regulatory frameworks, financial literacy and distribution infrastructure continue to evolve in Africa, creating significant opportunities for future growth of takaful, according to Moody's Ratings.
In a report on the global Islamic insurance market, Moody’s notes that in Africa, the take-up of takaful remains low currently despite a large Muslim population and favourable demographics.
On a bright note, in Morocco, Egypt, Nigeria and parts of West Africa, growing demand and stronger regulation are gradually improving the operating environment for takaful operators, although market development remains at an earlier stage than in the GCC and Southeast Asia.
In the GCC region, strong economic activity, high healthcare spending, population growth and the spread of compulsory insurance are supporting takaful contributions.
Saudi Arabia remains the world's largest single takaful market, and the biggest in the GCC. Demand continues to benefit from the country's Vision 2030 economic diversification plan, which includes increases in compulsory insurance requirements. Saudi Arabia's insurance sector reported improved profitability overall during first half of 2026, reflecting a stronger underwriting performance and higher investment income. However, profitability remains uneven among smaller operators.
In Asia, Malaysia is the largest takaful market. The country is also the second largest takaful market globally, and continues to serve as a benchmark for industry development. Family takaful remains the dominant product. The industry continues to focus on digitalisation, sustainability, financial inclusion and talent development. These initiatives support Malaysia's position as a regional leader in Islamic finance and takaful.
Elsewhere in Asia, Indonesia, Pakistan and Bangladesh also offer attractive long-term growth prospects because of low penetration levels and growing policy support for Islamic finance.
Moody’s says that it expects moderate growth in global Islamic insurance premiums over the next two to three years.