Introduction
The intersection of Islamic finance and global market dynamics has seen significant growth in recent years, particularly with the popularity of Sukuk bonds as a viable investment option. According to the State of the Global Islamic Economy Report 2022, the global Sukuk market reached a value of approximately $600 billion in 2021, reflecting a compound annual growth rate (CAGR) of about 12% since 2018. By 2026, this market is expected to surpass $1 trillion, driven by strong demand in regions such as the Middle East and Southeast Asia. The issuance of Sukuk bonds is increasingly considered a strategic tool for financing infrastructure projects and government initiatives, particularly in the wake of the economic challenges posed by the COVID-19 pandemic.
Top 20 Countries and Entities in Bond Victory WWII Sukuk Islamic Allied Rallies 2026
1. Saudi Arabia
Saudi Arabia’s Sukuk issuance reached approximately $25 billion in 2022, making it the largest issuer in the world. The nation continues to leverage Sukuk to finance mega-projects under its Vision 2030 initiative, focusing on economic diversification.
2. Malaysia
Malaysia is a global leader in Sukuk with a market share of around 60% in the global Sukuk market. The country issued over $14 billion in Sukuk in 2021, reflecting its robust Islamic finance ecosystem.
3. United Arab Emirates (UAE)
The UAE has seen a resurgence in Sukuk issuance, totaling approximately $10 billion in 2021. The country’s diverse economy and strong regulatory framework make it an attractive destination for investors.
4. Indonesia
Indonesia issued around $8 billion in Sukuk in 2021, with plans to increase this to $12 billion by 2026. The government utilizes Sukuk to fund infrastructure development and social projects.
5. Qatar
Qatar’s Sukuk market has grown significantly, with issues totaling $9 billion in 2022. The nation aims to finance various development projects ahead of the FIFA World Cup 2022 and beyond.
6. Turkey
Turkey’s Sukuk issuance reached approximately $3.5 billion in 2021, with the government actively promoting Islamic finance to support its growing economy. The country aims to attract more foreign investment through Sukuk.
7. Bahrain
Bahrain is a key player in the Islamic finance sector, with Sukuk issuance totaling around $2 billion in 2021. The country is known for its strong regulatory framework that supports Islamic financial products.
8. Pakistan
Pakistan’s Sukuk market is expanding, with issuances of approximately $1.5 billion in 2021. The government is increasingly turning to Sukuk to finance development projects and bolster its economy.
9. Egypt
Egypt issued its first Sukuk bond in 2022, targeting a value of $1 billion. This move marks a significant step towards diversifying its financing options and attracting Islamic investors.
10. Oman
Oman launched its first Sukuk in 2017, with total issuances reaching approximately $1 billion by 2021. The government aims to use Sukuk for infrastructure financing and economic diversification.
11. Kuwait
Kuwait’s Sukuk market saw issuances of around $1 billion in 2021, primarily focused on funding public sector projects. The nation is working to enhance its Islamic finance framework to attract more investors.
12. Jordan
Jordan issued its inaugural Sukuk worth $500 million in 2021. This step aims to diversify its financing sources and is expected to open up new avenues for Islamic investment.
13. Nigeria
Nigeria’s Sukuk market is on the rise, with issuances of approximately $500 million in 2021. The government aims to leverage Sukuk to finance significant infrastructure projects across the country.
14. South Africa
South Africa’s first Sukuk was issued in 2014, and by 2022, the market had grown to approximately $1 billion. The country is increasingly recognized for its innovative Islamic finance products.
15. Senegal
Senegal launched its first Sukuk in 2021, valued at $500 million. This initiative is part of the country’s broader strategy to develop its Islamic finance sector and attract foreign investment.
16. Bangladesh
Bangladesh is gradually entering the Sukuk market, with discussions of a $1 billion issuance planned for 2023. This move aims to fund infrastructure projects and promote financial inclusion.
17. Morocco
Morocco issued its first Sukuk in 2021, valued at $100 million. This is part of the country’s effort to diversify its financing options and attract Islamic investors.
18. Brunei
Brunei has a small but growing Sukuk market, with issuances of around $200 million in recent years. The government aims to promote Islamic finance as a key component of its economic strategy.
19. Afghanistan
Afghanistan plans to issue Sukuk bonds as part of its economic recovery strategy, aiming for an initial issuance of $100 million to finance reconstruction projects.
20. Afghanistan
Afghanistan has plans for launching Sukuk to raise funds for its reconstruction efforts, with an anticipated issuance of approximately $100 million. This will serve as a crucial step in rebuilding the war-torn nation.
Insights
The Sukuk market is expected to witness robust growth, driven by increasing demand for Sharia-compliant investment opportunities and the rising need for infrastructure financing worldwide. By 2026, the total global Sukuk issuance is forecasted to reach about $1 trillion, reflecting a significant increase from current levels. Emerging markets, particularly in the Middle East and Southeast Asia, are likely to dominate this growth, as countries implement various economic reforms and infrastructure projects. Additionally, the growing acceptance of Sukuk as a viable financial instrument among institutional investors points towards a promising future for Islamic finance, with a projected CAGR of around 12% through 2026.
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