Introduction
In recent years, the global Islamic finance market has gained significant momentum, driven by an increasing demand for Sharia-compliant investment products. The market size was estimated at approximately $2.88 trillion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 10% through 2026. One of the notable developments in this space is the introduction of the Secured Overnight Financing Rate (SOFR) as a benchmark for Sukuk, which is expected to reshape Islamic finance strategies and enhance liquidity in the bond market.
Top 20 Bond Floating SOFR Sukuk Islamic Benchmark Reset 2026
1. Saudi Arabia
Saudi Arabia is one of the largest issuers of Sukuk globally, with around $24 billion in Sukuk outstanding as of 2020. The Kingdom’s commitment to Vision 2030 has led to an increase in infrastructure projects funded through Sukuk, making it a key player in the Islamic finance landscape.
2. Malaysia
Malaysia, a leader in Islamic finance, has issued over $250 billion worth of Sukuk, accounting for around 60% of the global Sukuk market. The country’s regulatory framework supports a robust Sukuk issuance environment, making it an attractive destination for investors.
3. United Arab Emirates
The UAE has seen Sukuk issuances totaling $60 billion as of mid-2021. With Dubai hosting several major Islamic financial institutions, it’s a significant hub for Sukuk offerings, particularly in infrastructure and real estate sectors.
4. Indonesia
As the largest Muslim-majority country, Indonesia issued Sukuk worth $12 billion in 2020, focusing on sustainable development projects. The government’s commitment to Islamic finance is evident in its continuous Sukuk offerings to fund national development.
5. Turkey
Turkey’s Sukuk market has been growing steadily, with total issuances reaching approximately $8 billion as of 2021. The government has been actively promoting Sukuk to diversify its funding sources and attract international investors.
6. Qatar
Qatar has issued around $15 billion in Sukuk, primarily aimed at financing large infrastructure projects. The nation’s strategic position in the Gulf Cooperation Council (GCC) enhances its appeal to Islamic investors.
7. Bahrain
Bahrain has established itself as a key player in the Islamic finance sector, with Sukuk issuances totaling over $9 billion. The Central Bank of Bahrain actively facilitates Sukuk transactions, ensuring compliance with Sharia law.
8. Pakistan
Pakistan’s Sukuk market has garnered attention, with over $4 billion in outstanding Sukuk as of 2021. The government has utilized Sukuk to fund various public sector projects, boosting investor confidence in the market.
9. Oman
Oman has issued Sukuk worth approximately $2.5 billion, focusing on financing public projects. The government’s efforts to diversify funding sources have significantly bolstered the country’s Sukuk market.
10. Egypt
Egypt’s Sukuk market is emerging, with planned issuances expected to reach $1 billion by 2026. The government’s push for Islamic finance is reflected in its strategies to attract both domestic and foreign investors.
11. Kuwait
Kuwait has seen Sukuk issuances totaling around $3 billion, focusing on infrastructure and development projects. The country’s regulatory framework supports the growth of Islamic finance, attracting international players.
12. Nigeria
Nigeria issued its first sovereign Sukuk in 2017, with total outstanding Sukuk now at approximately $1.5 billion. The government aims to use Sukuk to bridge infrastructure gaps and enhance social development.
13. Jordan
Jordan has entered the Sukuk market with issuances worth approximately $700 million. The government is exploring Sukuk to finance various projects aimed at economic development and job creation.
14. Senegal
Senegal made its debut in the Sukuk market with a $200 million issuance in 2020. The government aims to leverage Islamic finance to fund infrastructure projects, showcasing the potential of Sukuk in Africa.
15. South Africa
South Africa’s Islamic finance sector is growing, with Sukuk issuances reaching around $500 million. The country is focused on attracting more Islamic investments to support its economic development goals.
16. Morocco
Morocco has been exploring Sukuk as a financing tool, with plans to issue approximately $1 billion in Sukuk by 2026. The government’s strategy is aimed at diversifying its funding sources.
17. Bangladesh
Bangladesh has launched Sukuk with an issuance of around $1 billion, aimed at financing infrastructure development. The government is actively promoting Islamic finance to attract local and foreign investors.
18. Tunisia
Tunisia has issued Sukuk worth approximately $300 million, focusing on social and economic development projects. The government sees Sukuk as a vital tool for financing its development agenda.
19. Afghanistan
Afghanistan is exploring the issuance of Sukuk to attract investments for reconstruction efforts. The government is considering potential issuances of around $200 million to boost economic recovery.
20. Brunei
Brunei has established a Sukuk market with issuances totaling around $1 billion. The government’s focus on sustainable development projects aligns with global trends in Islamic finance, attracting both local and international investors.
Insights
The landscape of Sukuk and Islamic finance is evolving, particularly with the introduction of SOFR as a benchmark for these instruments. This shift is expected to enhance liquidity and transparency, making Sukuk more attractive to global investors. According to a report by the Islamic Financial Services Board, the global Sukuk market is projected to reach $500 billion by 2026, reflecting a growing appetite for Sharia-compliant investments. As countries increasingly adopt Sukuk for infrastructure and development projects, the market is likely to witness enhanced participation from both public and private sectors, positioning Sukuk as a crucial financial instrument in the Islamic finance ecosystem.
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