Bond Victory Sukuk Islamic Allied Funding 2026
The global sukuk market has been experiencing significant growth, driven by rising demand for Sharia-compliant investment options. As of 2023, the total issuance of sukuk reached approximately $600 billion, with projections indicating it could surpass $800 billion by 2026. This growth reflects the increasing interest from both institutional and retail investors in ethical finance. Countries in the Middle East and Southeast Asia continue to dominate this market, showcasing a robust trend towards Islamic finance as an alternative funding mechanism.
1. Saudi Arabia
Saudi Arabia is a leading issuer of sukuk, with the Kingdom’s issuance exceeding $200 billion in 2022. The government has actively utilized sukuk to finance infrastructure projects, contributing to the Vision 2030 initiative aimed at diversifying the economy.
2. Malaysia
Malaysia remains a global hub for sukuk, with a market share of over 50% of the global sukuk issuance. The country issued approximately $50 billion in sukuk in 2022, showcasing its strong regulatory framework and investor-friendly environment.
3. United Arab Emirates (UAE)
The UAE’s sukuk market is valued at around $75 billion, with Dubai being a significant player. The emirate issued $5 billion in sukuk in 2022 to fund various development projects, reaffirming its position in the Islamic finance landscape.
4. Indonesia
Indonesia has emerged as a key market for sukuk, with total issuances reaching $20 billion in 2022. The government has utilized sukuk to finance infrastructure projects, catering to the country’s growing fiscal needs.
5. Qatar
Qatar’s sukuk market is valued at approximately $25 billion. The government issued $10 billion in sukuk in 2022, primarily for infrastructure and development projects, aligning with its National Vision 2030 goals.
6. Turkey
Turkey’s sukuk market has gained traction, with total issuances reaching $15 billion in 2022. The government has actively promoted sukuk as a means to finance public projects, helping to attract foreign investment.
7. Bahrain
Bahrain is a prominent player in the Islamic finance sector, with sukuk issuances totaling $5 billion in 2022. The country has positioned itself as a center for Islamic banking and finance, attracting regional and international investors.
8. Pakistan
Pakistan’s sukuk market has shown potential, with total issuances reaching $3 billion in 2022. The government has utilized sukuk to finance various development projects, enhancing infrastructure and social services.
9. Egypt
Egypt has entered the sukuk market with a total issuance of approximately $3 billion in 2022. The government is exploring sukuk as a viable funding source for its economic development plans, appealing to both local and foreign investors.
10. Oman
Oman’s sukuk market is valued at around $3 billion. The government has focused on sukuk to finance infrastructure projects, contributing to economic diversification and development goals.
11. Kuwait
Kuwait has established a robust sukuk market, with issuances reaching $5 billion in 2022. The government’s issuance strategy focuses on financing developmental projects and enhancing public services.
12. Bangladesh
Bangladesh’s sukuk market is emerging, with total issuances reaching $1 billion in 2022. The government is actively exploring sukuk as a funding option for infrastructure and social development projects.
13. Jordan
Jordan has issued approximately $500 million in sukuk in 2022. The government aims to utilize sukuk for financing public projects, tapping into the growing interest in Islamic finance.
14. Morocco
Morocco has issued $1 billion in sukuk in 2022, focusing on financing renewable energy and infrastructure projects. The country is positioning itself as a growing player in the Islamic finance sector.
15. South Africa
South Africa’s sukuk market is valued at approximately $500 million. The country issued its first sukuk in 2022, aiming to tap into the growing Islamic finance sector and diversify its funding sources.
16. Nigeria
Nigeria’s sukuk market has gained attention, with total issuances reaching $1 billion in 2022. The government has utilized sukuk to finance infrastructure projects, appealing to both local and international investors.
17. Senegal
Senegal has introduced sukuk with total issuances of around $500 million in 2022. The government is exploring sukuk as a means to fund development projects and stimulate economic growth.
18. Iraq
Iraq has issued approximately $200 million in sukuk in 2022. The government is leveraging sukuk for financing reconstruction and infrastructure projects, aiming to attract foreign investment.
19. Afghanistan
Afghanistan’s sukuk market is nascent, with a small issuance of around $100 million in 2022. The government is exploring sukuk as a potential funding source for development and humanitarian projects.
20. Maldives
Maldives has introduced sukuk with issuances of approximately $150 million in 2022. The government aims to utilize sukuk for financing tourism and infrastructure projects, tapping into the Islamic finance market.
Insights
The sukuk market is poised for significant growth in the coming years, with an estimated CAGR of 10% from 2023 to 2026. The increasing demand for ethical investment options, coupled with supportive regulatory frameworks in various countries, is driving this expansion. By 2026, sukuk issuances are expected to exceed $800 billion, reflecting a robust appetite for Sharia-compliant financial instruments. Additionally, the diversification of sectors utilizing sukuk—from infrastructure to renewable energy—indicates a broadening appeal, attracting a wider range of investors to the Islamic finance market.
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