Introduction
The global market for Islamic finance is witnessing significant growth, driven by increasing demand for Sharia-compliant investment instruments, including sukuk. In 2022, the global sukuk market reached approximately $600 billion, with an expected compound annual growth rate (CAGR) of around 12% through 2026. As countries prioritize sustainable economic development and seek alternative financing methods, the issuance of Bond Sinking Redemption Sukuk is becoming a viable option, particularly in Islamic economies. This report identifies the top 20 players in the Bond Sinking Redemption Sukuk market scheduled for 2026.
Top 20 Bond Sinking Redemption Sukuk Issuers for 2026
1. Saudi Arabia
Saudi Arabia is a leader in the sukuk market, issuing over $60 billion in sukuk in 2022 alone. The government’s Vision 2030 initiative has spurred demand for sukuk to finance infrastructure and diversification projects, with plans for additional issuances by 2026.
2. Malaysia
Malaysia is one of the largest issuers of sukuk globally, with a market share of around 50% in 2021. The country is expected to issue approximately $30 billion in sukuk by 2026, supported by its robust regulatory framework and investor appetite for Islamic financing.
3. Indonesia
Indonesia’s sukuk market has seen a significant uptick, with issuances reaching $12 billion in 2021. The government plans to diversify its financing sources, targeting $15 billion in sukuk by 2026 to fund its infrastructure projects.
4. United Arab Emirates (UAE)
The UAE has emerged as a strong player in the sukuk market, with a total issuance of around $23 billion in 2022. By 2026, the country aims to enhance its Islamic finance ecosystem, potentially issuing $25 billion in sukuk.
5. Turkey
Turkey’s sukuk market is evolving, with an issuance of approximately $4 billion in 2021. The country has ambitious plans to increase sukuk issuance to $10 billion by 2026, driven by government-backed projects and private sector growth.
6. Qatar
Qatar’s sukuk market gained momentum with $9 billion in issuance in 2022. By 2026, the country aims for a target of $12 billion, focusing on infrastructure and development projects that align with its National Vision 2030.
7. Bahrain
Bahrain has solidified its position as a regional hub for sukuk, with issuances of around $1 billion in the past year. The country plans to grow its sukuk market to $2 billion by 2026, attracting both local and international investors.
8. Pakistan
Pakistan’s sukuk market is growing steadily, with a total issuance of approximately $3 billion in 2021. The government aims to raise $5 billion by 2026, targeting infrastructure and social development projects through Islamic financing.
9. Oman
Oman has entered the sukuk market recently, issuing around $2 billion in 2021. The country is expected to increase its sukuk issuance to $4 billion by 2026, focusing on sustainable development and infrastructure projects.
10. Egypt
Egypt’s government is exploring sukuk as a viable financing option, with an expected issuance of $3 billion by 2026. This move is part of the country’s broader strategy to engage Islamic finance for funding development projects.
11. Kuwait
Kuwait’s sukuk market has shown resilience, with approximately $5 billion in sukuk issued in 2022. The country aims for $7 billion in issuances by 2026, primarily for infrastructure and public service projects.
12. Jordan
Jordan’s sukuk market is still developing, with an issuance of about $1 billion in 2021. The government is expected to target $2 billion by 2026, leveraging Islamic finance to support socio-economic development.
13. Morocco
Morocco has recently entered the sukuk market, issuing its first sukuk worth $1 billion in 2022. By 2026, the country aims to issue $2 billion in sukuk to finance infrastructure and social projects.
14. South Africa
South Africa’s Islamic finance sector is growing, with a sukuk issuance of around $1 billion in 2021. The government is looking to increase this to $2 billion by 2026, focusing on infrastructure development and economic growth.
15. Bangladesh
Bangladesh has shown interest in sukuk, with plans to issue around $1 billion by 2026. The government aims to utilize sukuk for financing infrastructure and development projects to boost the economy.
16. Brunei
Brunei’s sukuk market is relatively small but growing, with an issuance of approximately $500 million in 2021. The country aims to reach $1 billion in sukuk issuance by 2026, focusing on sustainable development.
17. Nigeria
Nigeria’s sukuk market is evolving, with a total issuance of $1 billion in 2021. The government is expected to target $2 billion by 2026, using sukuk for infrastructure and social services.
18. Afghanistan
Afghanistan’s sukuk market is nascent, but there are plans to issue approximately $300 million by 2026. This initiative aims to support post-conflict reconstruction and development efforts.
19. Lebanon
Lebanon is considering sukuk as a financing alternative, with an expected issuance of $500 million by 2026. The focus will be on funding essential public services and infrastructure.
20. Senegal
Senegal’s sukuk market is developing, with a planned issuance of approximately $200 million by 2026. The government aims to leverage sukuk to finance its development agenda and boost economic growth.
Insights
The Bond Sinking Redemption Sukuk market is poised for robust growth as countries increasingly recognize the benefits of Islamic finance. With a projected global sukuk market size of approximately $900 billion by 2026, this financial instrument is gaining traction across diverse regions. Factors such as government support, regulatory frameworks, and investor demand are driving this trend. Notably, the Middle East and Southeast Asia are expected to be the primary hubs for sukuk issuance. As countries like Indonesia and Malaysia expand their sukuk offerings, the industry is set to embrace innovation, potentially introducing green sukuk to meet sustainable finance goals, which could account for an estimated 30% of total issuances by 2026.
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