In 2020, around **** percent of the Iranian population identified as Muslim. Around ** percent identified as Shia Muslims in the same year, while a much smaller share followed the Sunni Muslim religion. In Iran, most Sunni Muslims belong to ethnic minority groups. Iran’s demographics The total population in Iran has grown steadily and is expected to surpass ** million in 2028. The vast majority of the population in the country was between 15 and 64 years of age. At the same time, the share of people aged above 64 increased in recent years and constituted over ***** percent of the total population. Muslim population worldwide In Europe, it was estimated that the Muslim population could triple by the middle of the century. In Southeast Asia, Indonesia had the largest share of Muslims as a proportion of its population. On the African continent, the highest number of Muslims was estimated in Nigeria, with close to a hundred million Islam followers. In the United States, less than one percent of the population identified as Muslims.

As of 2020, around **** percent of the Iranian population identify as Muslims. According to forecasts for 2050, the share of Muslims in Iran was projected to slightly decline by *** percent.

Iran: Shia Muslims as percent of the total population: The latest value from 2013 is 90 percent, unchanged from 90 percent in 2012. In comparison, the world average is 31.6 percent, based on data from 15 countries. Historically, the average for Iran from 1960 to 2013 is 92.1 percent. The minimum value, 90 percent, was reached in 2008 while the maximum of 94 percent was recorded in 1960.

In 1800, the population of the modern-day territory of Iran was approximately 6.3 million. This figure would see modest growth throughout the 19th century, as several wars and a mass famine in 1870-1871 (modern estimates put its death toll at around 1.5 million people) were largely balanced out by a surge in migration to Iran; this migration came as the Russian Empire expanded into the Caucuses, and caused a wave of refugees to flee southwards to avoid forced expulsion and ethnic cleansing in the North Caucasus region, particularly from 1864 onwards. As a result, the population of Iran reached ten million by the turn of the 20th century.

Twentieth century growth Iran’s population would begin to grow rapidly in the 20th century, as the discovery of oil in the country in 1908 led to an economic boom, and the socio-economic reforms implemented under Reza Shah would see a number of medical and healthcare advancements across the country. Although unpopular with religious fundamentalists, Reza Shah's reforms had long-term influence on the demographic development of Iran, even after his abdication in 1941. Following the Second World War, Iran became increasingly westernized and developed relatively strong relations with the U.S.; however, western influence, economic imbalances and the oppression of the Mohammed Reza Shah's regime became the driving forces behind the Iranian Revolution, which was one of the most significant moments in the history of the region.

Growth after the Revolution The 1979 Iranian Revolution saw the removal of the Shah and an end to Iran's so called westernization; the monarchy was replaced by an Islamic, theocratic regime led by the Supreme Leader, Ayatollah Ruhollah Khomeini. During Khomeini's decade in charge he oversaw Iran's transition into an Islamic Republic, which implemented radical political and cultural changes in the country, and this coincided with an increased population growth rate in the 1980s. This growth was promoted by the Iranian government, who encouraged a baby boom during the Iran–Iraq War between 1980 and 1988, as part of an effort to increase future Iranian military manpower. As a result of this strategy, the population of Iran would grow from approximately 38.6 million in 1980 to over 56 million just a decade later. Following the implementation of a UN-brokered ceasefire in 1988, population growth in Iran would slow, as economic sanctions and government implementation of family planning policies would lead to a drop in fertility. Population growth has continued steadily into the 21st century, however, and in 2020, Iran is estimated to have a population of 84 million.

As of 2020, **** percent of Iranian survey respondents stated that they follows the Shia Muslim belief. This was followed by **** percent of respondents who said that they have no religious belief.

The Middle East Islamic finance market, encompassing Islamic banking, Takaful (Islamic insurance), and Sukuk (Islamic bonds), is projected to experience robust growth, driven by a rising Muslim population, increasing religious observance, and supportive government policies across the region. The market's Compound Annual Growth Rate (CAGR) of 5.12% from 2019 to 2024 suggests a significant expansion, expected to continue throughout the forecast period (2025-2033). Key drivers include the growing demand for Sharia-compliant financial products, increasing awareness of ethical and sustainable investment options, and the region's substantial financial reserves. Furthermore, technological advancements, such as fintech solutions catering to Islamic finance, are accelerating market expansion. While specific regional data is unavailable, Saudi Arabia, the UAE, and Qatar are likely to remain dominant players due to their well-established Islamic finance sectors and substantial economic strength. However, emerging markets like Iraq and Iran also present significant untapped potential, contingent on economic and political stability. Challenges include regulatory hurdles in some countries, the need for standardized global Islamic finance regulations, and the potential for macroeconomic fluctuations to influence investor confidence. The market segmentation reveals a strong reliance on Islamic banking, followed by Takaful and Sukuk. However, the "Other Fi" segment, encompassing areas like Islamic microfinance and wealth management, presents a significant opportunity for future growth. Given the 5.12% CAGR and a reported market size of 2 million (presumably in USD), we can reasonably estimate a 2025 market size of approximately $2.10 million (assuming a consistent growth rate over the past year). This serves as a base for projecting future market size using the CAGR and considering factors such as regional economic performance and regulatory developments. The leading players, including Barwa Bank, Iraqi Islamic Bank of Inv & Dev, Mellat Bank, and others listed, are likely to consolidate their market share while simultaneously facing increased competition from both established and new entrants. This in-depth report provides a comprehensive analysis of the Middle East Islamic finance market, covering the period from 2019 to 2033. It offers valuable insights into market size, growth drivers, challenges, and future trends, leveraging data from the base year 2025 and forecasting until 2033. The report is essential for investors, businesses, and policymakers seeking a thorough understanding of this dynamic and rapidly evolving sector. Key geographic areas include Saudi Arabia, UAE, Qatar, Iran, Iraq, and the Rest of the Middle East. The financial sectors analyzed encompass Islamic banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and other Islamic financial instruments. Keywords: Islamic Finance Market, Middle East, Islamic Banking, Takaful, Sukuk, Saudi Arabia, UAE, Qatar, Iran, Iraq, Islamic finance investments, Sharia-compliant finance, Islamic finance regulations, Middle East economic growth Recent developments include: September 2023: Abu Dhabi Securities Exchange (ADX) collaborated with Sharjah Islamic Bank (SIB) to enhance and streamline access to Initial Public Offering (IPO) subscriptions for investors., March 2023: Aafaq Islamic Finance, a prominent provider of Shariah-compliant financial products and services, partnered with Rasmala, a distinguished regional investment management firm. This partnership aims to develop and broaden product offerings for Aafaq's clients, as well as to provide advisory services to Aafaq on its proprietary investment book.. Key drivers for this market are: Growing Muslim Population is Driving the Market. Potential restraints include: Growing Muslim Population is Driving the Market. Notable trends are: Growing Fintech Digital Sukuk.

The statistic shows the percentage of Shiites in the population of selected countries in the Middle East. In Iran, about 92.5 percent of the population are Shiites.

The Islamic finance market, encompassing Islamic banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and other Islamic financial institutions (OIFIs), is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 10% from 2025 to 2033. This expansion is driven by several key factors. The increasing global Muslim population, coupled with a rising awareness and acceptance of Sharia-compliant financial products, fuels significant demand. Furthermore, supportive government policies in many Muslim-majority countries actively promote the development of their Islamic finance sectors, creating a favorable regulatory environment. Technological advancements, such as the growth of fintech solutions tailored to Islamic finance principles, are also contributing to market expansion by improving accessibility and efficiency. Diversification within the industry, particularly the growth of Islamic funds and the increasing complexity of Sukuk instruments, further broadens the market appeal. While the market faces challenges such as fluctuating oil prices ( impacting some key regional economies), and potential regulatory hurdles in certain jurisdictions, these are largely outweighed by the positive growth drivers. The geographical distribution reveals strong concentration in the Gulf Cooperation Council (GCC) countries and wider Middle East and North Africa (MENA) region, but significant opportunities exist for growth in Southeast Asia and other regions with substantial Muslim populations. Major players such as Dubai Islamic Bank, National Commercial Bank Saudi Arabia, and others are leading this expansion, both organically and through strategic mergers and acquisitions. The long-term outlook remains positive, suggesting continued expansion and diversification within the Islamic finance landscape over the next decade. Recent developments include: January 2023: Abu Dhabi Islamic Bank (ADIB) has increased its ownership in ADIB Egypt to more than 52%. The UAE-based bank has acquired 9.6 million shares from the National Investment Bank (NIB), representing 2.4% of ADIB Egypt's share capital, the bank told the Abu Dhabi Securities Exchange (ADX). The deal has raised ADIB UAE's ownership in the Egyptian unit to 52.607%., July 2022: The Islamic banking group Kuwait Finance House (KFH) has agreed to buy Bahrain-based peer Ahli United Bank (AUB) through a share swap deal. With 115 billion USD in assets, the new bank is expected to be the seventh largest in the Gulf region. According to the revised terms, the Kuwaiti lender will offer one share for every 2.695 shares of Ahli United, implying an offer price of USD 1.04 per share.. Notable trends are: Malaysia is the top Score Value for Islamic Finance Development Indicator.

The Bahá’í faith is one of the world's youngest major religions, having been founded in 19th century Persia (now Iran) by the prophet Bahá’u’lláh. Bahá’u’lláh had been a follower of a merchant called the Báb, who had developed a substantial following in Persia after claiming to be a manifestation of god. This small but growing religion was brutally suppressed by the Shia Muslim authorities in Persia, with the Báb himself being executed in 1850. Following this, Bahá’u’lláh fled into exile in Baghdad, in present-day Iraq, where he began to preach that he was the next in the line of God's messengers after the Báb. Both of the prophets claimed the lineage of all Abrahamic religions, combining beliefs from Islam, Christianity, and Judaism. Bahá’u’lláh was eventually forced to settle in the coastal city of ‘Akká, Palestine (now Acre, Israel) where he died in 1892. The site of his death became the central place of pilgrimage in the Bahá’í faith, and is why the center of the religion is today in the nearby city of Haifa. Beliefs of the Bahá’í The Bahá’í are perhaps unique for a major religion, as rather than emphasizing the correctness of their own beliefs over other religions, followers of Bahá’í believe that there is truth in all world religions and that there should be peace and harmony among the different faiths. Bahá’ís recognize the prophets and messengers of the different world religions as all part of the same process of revelation by God to humanity. While they believe in plurality among those who bring God's message, the Bahá’í are monotheistic and believe in only one god, rather than multiple. Bahá’u’lláh taught that the different religions developed to convey the same message of God, but in different societies and time periods, meaning that the message has been delivered in different ways to suit the needs of the time and place. The key teachings of the Bahá’í faith include the unity of science and religion, equality between different peoples and religions, the importance of education and tolerance, and the unity of world religions due to the oneness of God. Today it is estimated that over five million people follow the teachings of the Báb and Bahá’u’lláh worldwide.