Introduction
The global Sukuk market is poised for significant expansion, driven by growing demand for Sharia-compliant financing solutions. According to recent estimates, the global Sukuk market size reached approximately $600 billion in 2023, with a projected compound annual growth rate (CAGR) of 7.4% through 2026. The increasing focus on sustainable and ethical investment, combined with favorable regulatory frameworks in key regions, is likely to catalyze the issuance of Islamic offshore bonds in Euros (EUR) as financial institutions and governments seek to diversify their funding sources.
Top 20 Countries for Bond Euro Sukuk Islamic Offshore EUR Issuance 2026
1. Malaysia
Malaysia is the leading issuer of Sukuk globally, accounting for approximately 50% of the total market. The country issued around $60 billion in Sukuk in 2022, significantly contributing to its financial sector’s stability and growth.
2. Saudi Arabia
Saudi Arabia ranks as a major player in the Sukuk market, with a market share of about 30%. The Kingdom’s issuance of $30 billion in Sukuk in 2022 supports its Vision 2030 initiative aimed at economic diversification.
3. Indonesia
Indonesia is the largest Sukuk issuer in Southeast Asia, with a total issuance of approximately $15 billion in 2022. The country’s government aims to boost infrastructure development through Islamic financing.
4. UAE
The UAE, particularly Dubai, has seen a robust growth in Sukuk issuance, reflecting an increase in Sharia-compliant investments. In 2022, the UAE’s Sukuk issuance reached around $12 billion.
5. Turkey
Turkey has emerged as a significant player with a reported Sukuk issuance of about $10 billion in 2022. The country’s efforts to promote Islamic finance have attracted more investors in recent years.
6. Qatar
Qatar continues to be a strong contender in Sukuk issuance, with an estimated volume of $8 billion in 2022. The Qatari government is focusing on sustainable financing to support its national vision.
7. Bahrain
Bahrain has established itself as a prominent hub for Islamic finance, with Sukuk issuance reaching $6 billion in 2022. The country is home to several Islamic banks and financial institutions.
8. Egypt
Egypt is gaining traction in the Sukuk market, with $5 billion issued in 2022. The government is exploring Sukuk as a means to finance development projects and enhance its infrastructure.
9. Oman
Oman has increased its engagement in the Sukuk market with $4 billion issued in 2022. The country’s efforts to diversify its economy have led to a growing interest in Islamic finance.
10. Pakistan
Pakistan has also entered the Sukuk market, with an estimated issuance of $3 billion in 2022. The government aims to attract foreign investment through Islamic financial instruments.
11. Jordan
Jordan has issued approximately $2 billion in Sukuk in 2022, focusing on development projects and infrastructure improvements. The government is keen to enhance its Sharia-compliant offerings.
12. Morocco
Morocco’s Sukuk market has seen moderate growth with an issuance of around $1.5 billion in 2022. The country is looking to expand its Islamic finance sector to meet rising demand.
13. Nigeria
Nigeria has issued approximately $1 billion in Sukuk in 2022, focusing on financing infrastructure projects. The country’s Sukuk market is expected to grow as awareness of Islamic finance increases.
14. South Africa
South Africa has begun to explore Sukuk issuance, with the potential for growth estimated at $800 million in 2022. The country is looking to attract investments from the Islamic finance community.
15. Kuwait
Kuwait has reported Sukuk issuances of around $700 million in 2022. The government is working to bolster its Islamic finance sector to diversify its economy.
16. Sri Lanka
Sri Lanka’s Sukuk market is nascent but shows promise, with an estimated issuance of $500 million in 2022. The government aims to tap into the Islamic finance sector to meet its funding needs.
17. Bangladesh
Bangladesh has issued Sukuk worth approximately $300 million in 2022. The government is exploring Islamic finance as a means to support infrastructure and development projects.
18. Lebanon
Lebanon’s Sukuk market is currently small, with estimated issuances of around $200 million in 2022. The country is looking to attract Islamic investors to support its economy.
19. Afghanistan
Afghanistan is at the early stages of developing its Sukuk market, with potential issuances expected to reach $100 million by 2026. The government is working to stabilize its economy through various financial instruments.
20. Maldives
The Maldives has begun exploring Sukuk as a financial tool, with projected issuances of around $50 million by 2026. The government is focusing on sustainable tourism and infrastructure financing.
Insights
The trends in the Sukuk market indicate a robust growth trajectory, particularly in regions such as the Middle East and Southeast Asia. With a collective issuance of over $200 billion projected across these countries by 2026, the demand for Sharia-compliant financial products is on the rise. Factors driving this growth include increased investments in infrastructure, a growing awareness of sustainable financing practices, and governments’ commitments to diversifying their economies. Furthermore, as the global Sukuk market is expected to reach $1 trillion by 2026, stakeholders must remain vigilant to seize emerging opportunities while navigating regulatory frameworks across different jurisdictions.
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