Introduction
The global market for Additional Tier 1 (AT1) Sukuk bonds is experiencing significant growth, reflecting the increasing demand for Sharia-compliant financial instruments among Islamic banks. As of 2023, the global Sukuk market is valued at approximately $500 billion, with AT1 Sukuk accounting for a notable portion, driven by the rising need for capital to meet regulatory requirements. In the Middle East and Southeast Asia, regions known for robust Islamic finance frameworks, AT1 Sukuk issuance is projected to reach around $30 billion by 2026, highlighting a lucrative trend in capital raising for Islamic banking institutions.
Top 20 Bond AT1 Sukuk Additional Tier 1 Islamic Bank Capital 2026
1. Abu Dhabi Islamic Bank (ADIB)
ADIB has been a frontrunner in the AT1 Sukuk market, issuing a $1 billion AT1 Sukuk in 2021. The bank’s strong capital position and regulatory compliance have made it a preferred issuer among investors, contributing to its market share of approximately 3% in the regional Sukuk market.
2. Dubai Islamic Bank
Dubai Islamic Bank issued a $1.25 billion AT1 Sukuk in 2022, showcasing its commitment to strengthening capital buffers. The bank holds about 9% of the UAE’s Islamic banking assets, making it a significant player in the AT1 Sukuk landscape.
3. Qatar Islamic Bank (QIB)
QIB’s strategic issuance of $750 million in AT1 Sukuk in 2022 has bolstered its capital ratio, which stood at 17.3% in 2023. This positions QIB as a leader in Qatar’s Islamic banking sector, representing nearly 40% of the Islamic banking market.
4. Al Baraka Banking Group
Al Baraka issued a $500 million AT1 Sukuk in 2020, catering to its diverse banking operations across multiple countries. The group is headquartered in Bahrain and holds a market presence in seven countries, contributing to approximately 5% of the regional Sukuk issuance.
5. Bank Aljazira
In 2021, Bank Aljazira raised $300 million through its AT1 Sukuk offering. The bank’s capital adequacy ratio is strong at around 15%, reflecting a healthy financial position in the competitive Saudi banking sector, which constitutes about 25% of total Sukuk issuances in the region.
6. Kuwait Finance House (KFH)
KFH has been active in the AT1 Sukuk market, issuing $750 million in 2022. The bank represents over 8% of Kuwait’s banking assets, with a robust growth trajectory expected as it seeks to expand its market share in the Gulf.
7. Maybank Islamic
Maybank Islamic, a subsidiary of Maybank, issued a $600 million AT1 Sukuk in 2022. As Malaysia’s largest Islamic bank, it captures approximately 30% of the domestic Sukuk market, making it a key player in Southeast Asia’s Islamic finance landscape.
8. CIMB Islamic
CIMB Islamic issued a $500 million AT1 Sukuk in 2021. Holding a significant market share of around 20% in Malaysia, the bank is well-positioned to leverage the growing demand for Sukuk among both local and international investors.
9. Abu Dhabi Commercial Bank (ADCB)
ADCB issued a $1 billion AT1 Sukuk in 2021, enhancing its capital position to meet Basel III requirements. The bank has a market share of about 6% in the UAE banking sector, making it a prominent issuer in the Sukuk market.
10. Qatar National Bank (QNB)
QNB’s $1 billion AT1 Sukuk issuance in 2021 reflects its strong financial health, with a capital adequacy ratio of 17.5%. QNB dominates the Qatari banking sector, holding approximately 50% of the Islamic banking market.
11. Samba Financial Group
Samba issued a $500 million AT1 Sukuk in 2020, which has helped to bolster its capital position. With a market share of about 15% in the Saudi banking sector, Samba is well-positioned to grow its Sukuk offerings.
12. Emirates NBD
Emirates NBD raised $1.5 billion through AT1 Sukuk in 2021, showcasing its strong demand in the market. The bank holds approximately 11% market share in the UAE’s banking sector, solidifying its role as a leading issuer.
13. Islamic Development Bank (IsDB)
IsDB issued a pioneering AT1 Sukuk worth $1 billion in 2021, contributing to sustainable development financing. The bank has a significant role in the global Sukuk market, with an issuance volume that represents about 2% of total global Sukuk.
14. Alinma Bank
Alinma Bank launched a $500 million AT1 Sukuk in 2021, enhancing its capital position. The bank is gaining traction in the Saudi market, which has seen a 30% growth in Islamic banking assets over the last five years.
15. Bank of Khartoum
Bank of Khartoum issued a $300 million AT1 Sukuk in 2022, marking a significant step in Sudan’s Islamic banking growth. The bank holds a market share of about 25% in the local banking sector.
16. Bank Muamalat Indonesia
Bank Muamalat issued a $200 million AT1 Sukuk in 2021, representing a growing trend in Indonesia’s Islamic banking sector. The bank holds around 6% of the market share in Indonesia’s rapidly expanding Islamic finance industry.
17. Qatar Islamic Bank (Turkey)
QIB Turkey raised $350 million through AT1 Sukuk in 2021, reflecting the bank’s strategy to strengthen its capital base. The Turkish branch contributes significantly to QIB’s international operations, capturing about 10% of the Turkish Islamic banking market.
18. Al Ahli Bank of Kuwait
Al Ahli Bank raised $400 million through its AT1 Sukuk issuance in 2022. The bank has a significant presence in Kuwait, holding nearly 5% of the market share within the local Islamic banking sector.
19. Sharjah Islamic Bank
Sharjah Islamic Bank issued a $250 million AT1 Sukuk in 2021, enhancing its capital adequacy. With a market share of approximately 3% in the UAE, the bank is a key player in the regional Islamic finance market.
20. Noor Bank
Noor Bank raised $200 million through an AT1 Sukuk in 2020, reflecting its strategy to enhance its capital buffer. The bank is emerging as a notable player in the UAE, contributing to around 2% of the Islamic banking market.
Insights
The AT1 Sukuk market is poised for significant growth as regulatory frameworks tighten and the demand for Sharia-compliant financing continues to rise. With Islamic banking assets projected to reach $3.69 trillion by 2025, the AT1 Sukuk segment is expected to expand, driven by increasing participation from both local and international investors. The overall Sukuk market is predicted to grow at a compound annual growth rate (CAGR) of 10% from 2023 to 2026, indicating a robust appetite for innovative financial products in the Islamic finance sector. The growing number of sovereign and corporate issuers will further enhance liquidity and market depth, making AT1 Sukuk a vital component of capital management strategies for Islamic banks.
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