AlHuda Centre of Islamic Banking and Economics is expanding its activities into the Caribbean as it seeks to introduce Shariah-compliant banking, investment and insurance products across a region that has remained largely outside the global Islamic finance industry. The initiative follows meetings with financial institutions, regulators and development organisations in several Caribbean markets.
Regional engagement gains momentum
AlHuda CIBE chief executive Muhammad Zubair Mughal recently completed a tour covering Trinidad and Tobago, Barbados, and Saint Vincent and the Grenadines. The visit assessed the existing financial landscape, identified potential demand and explored partnerships with policymakers and financial professionals.
Discussions focused on the feasibility of establishing Islamic banking windows within conventional institutions and, over time, developing standalone Shariah-compliant financial companies.
The engagement also considered professional education, product development and the regulatory changes that would be required before Islamic finance could operate at scale.
Although the Caribbean consists of a diverse group of economies, most rely almost entirely on conventional banking. Islamic financial products are generally fragmented and directed primarily towards Muslim communities, while no regional government has yet introduced a comprehensive Islamic banking framework.
Untapped demand and investment potential
Muslims account for approximately 5% of the population of Trinidad and Tobago and as much as 13% in Guyana, providing a potential customer base for products structured according to Islamic principles.
However, AlHuda CIBE argues that the opportunity extends beyond religious demand. Islamic finance emphasises asset-backed transactions, shared risk and restrictions on excessive speculation, allowing it to be positioned as an ethical alternative for a broader market.
Products such as Murabaha financing, Musharakah partnerships and Ijarah leasing could support households and small businesses. Islamic microfinance may also provide additional options for entrepreneurs and underserved communities that remain outside conventional lending systems.
Takaful, the Islamic model of cooperative insurance, could help address protection gaps affecting households and businesses across the region.
Sukuk could finance infrastructure
Caribbean governments face substantial financing requirements for transport, energy, housing and climate resilience. Sukuk, which raise capital through structures connected to assets or economic activity, could provide access to investors in the Gulf and other established Islamic finance markets.
Global sukuk issuance exceeded $264 billion in 2025, while total Islamic financial assets reached approximately $5.3 trillion. The industry is expected to surpass $6 trillion by the end of 2026.
Green sukuk may be particularly relevant for Caribbean small island states seeking to strengthen infrastructure against hurricanes, rising sea levels and other climate-related threats.
The region’s tourism, agriculture and food-production industries could also benefit from closer connections with the international halal economy.
Four-part development strategy
AlHuda CIBE’s Caribbean strategy centres on regulatory dialogue, professional capacity building, industry promotion and international collaboration.
The organisation intends to work with regulators on appropriate legal frameworks, provide specialist training and certification, and connect Caribbean institutions with Islamic finance organisations, Gulf investors and multilateral development partners.
Its Caribbean Islamic Banking and Finance workshop in Trinidad and Tobago brought together policymakers, banking professionals, investors and industry specialists under the theme of connecting global Islamic finance with regional opportunities.
The initiative remains at an early stage. Regulatory readiness, public awareness and the availability of qualified Shariah advisers will determine how quickly the market develops. Nevertheless, AlHuda CIBE’s engagement represents a concrete attempt to connect Caribbean financing needs with one of the fastest-growing segments of the international financial system.
Newshub Editorial in the Caribbean – 20 July 2026
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