Introduction
The global landscape for Islamic finance is witnessing an upward trend, with a notable increase in the issuance of Sukuk—Islamic bonds that comply with Sharia law. According to the Islamic Financial Services Board, the global Sukuk market reached approximately $500 billion in outstanding issuances by the end of 2022, reflecting a growth rate of about 13% from the previous year. The Bond Exchangeable Subsidiary Sukuk (BESS) has emerged as a significant instrument, especially in regions with burgeoning Islamic finance frameworks, such as the Middle East and Southeast Asia. By 2026, experts predict that the market for BESS will continue to expand, driven by increased demand for Sharia-compliant investment options.
Top 20 Bond Exchangeable Subsidiary Sukuk Islamic Conversion 2026
1. Malaysia
Malaysia remains the frontrunner in the Sukuk market, accounting for approximately 55% of the global Sukuk issuance. In 2022, the country issued around $40 billion in Sukuk, bolstering its position as a key player in the Islamic finance sector.
2. Saudi Arabia
Saudi Arabia’s Sukuk market is rapidly expanding, with total issuances reaching $34 billion in 2022. The government’s Vision 2030 initiative is expected to further enhance the attractiveness of Sukuk as a financing tool, particularly for infrastructure projects.
3. Indonesia
Indonesia’s Sukuk market has shown impressive growth, amounting to $24 billion in total issuances as of 2022. The government is actively promoting Sukuk as a means to finance its development projects, targeting a significant increase in the coming years.
4. United Arab Emirates
The UAE is a significant hub for Islamic finance, with Sukuk issuances totaling $18 billion in 2022. The country’s commitment to developing the Islamic finance sector is expected to drive further growth and innovation in Sukuk offerings.
5. Turkey
Turkey’s Sukuk market has seen an upward trajectory, with total issuances reaching approximately $11 billion in 2022. The Turkish government is increasingly using Sukuk to finance its budgetary needs, which is likely to continue through 2026.
6. Bahrain
Bahrain’s Sukuk market is one of the most developed in the Gulf region, with total issuances of around $8 billion in 2022. The kingdom’s strategic initiatives to promote Islamic finance bolster its relevance in the global Sukuk landscape.
7. Pakistan
Pakistan has made strides in its Sukuk market, reaching $7 billion in Sukuk issuances in 2022. The government is focusing on Islamic finance to enhance funding for public sector projects, with expectations of growth in the coming years.
8. Qatar
Qatar’s Sukuk issuance reached $6.5 billion in 2022, driven by its ambitious infrastructure projects. The nation’s Islamic finance sector is expected to grow as it continues to attract both local and foreign investments.
9. Oman
Oman has begun to tap into the Sukuk market, with issuances totaling approximately $5 billion in 2022. The Sultanate is working to diversify its funding sources, and Sukuk is becoming a viable option for financing development projects.
10. Egypt
Egypt’s Sukuk market is in a nascent stage but has shown potential with $3 billion in issuances as of 2022. The government is exploring Sukuk as a means to finance various development initiatives, indicating future growth prospects.
11. Kuwait
Kuwait’s Sukuk market had total issuances of about $2.5 billion in 2022. The country’s financial institutions are increasingly adopting Sukuk as an investment vehicle, likely contributing to market expansion.
12. South Africa
Though not predominantly Islamic, South Africa has started to explore Sukuk, with a few issuances totaling approximately $1 billion in 2022. The interest in Sukuk is part of a broader strategy to attract investments from the Islamic finance community.
13. Jordan
Jordan’s Sukuk market is emerging, with total issuances of around $1.5 billion in 2022. The government is actively promoting Islamic financing to enhance its fiscal capabilities, which may lead to increased Sukuk activity.
14. Lebanon
Lebanon has issued Sukuk worth around $1 billion in 2022, primarily to finance national projects. The potential for growth lies in the government’s commitment to reforming its financial sector and attracting Islamic investments.
15. Bangladesh
Bangladesh’s Sukuk market is burgeoning, with issuances estimated at $800 million in 2022. The government has expressed interest in expanding Sukuk offerings to fund infrastructure and development projects.
16. Nigeria
Nigeria’s Sukuk market is developing, with total issuances reaching about $700 million in 2022. The country is looking to Islamic finance to diversify its funding sources and support infrastructural growth.
17. Brunei
Brunei is exploring Sukuk as a financing tool, with issuances around $500 million in 2022. The government aims to leverage Sukuk to fund national development initiatives.
18. Maldives
Maldives has entered the Sukuk market, with initial issuances estimated at $400 million in 2022. The government is keen on using Islamic finance to support tourism and infrastructure development.
19. Morocco
Morocco’s Sukuk market is nascent, with approximately $300 million in issuances as of 2022. The government is considering Sukuk to finance large-scale projects and attract Islamic investments.
20. Sri Lanka
Sri Lanka’s Sukuk market is in early development stages, with minimal issuances reported. However, the government is keen to explore Sukuk options to finance various public sector initiatives, indicating potential for future growth.
Insights
The Bond Exchangeable Subsidiary Sukuk market is poised for significant growth by 2026, driven by increasing demand for Sharia-compliant financing and global economic recovery post-pandemic. With a projected CAGR of approximately 15% in the next three years, we expect total Sukuk issuances to surpass $700 billion globally. Countries like Malaysia and Saudi Arabia will continue to lead the market, while emerging markets such as Nigeria and Bangladesh will increasingly tap into Sukuk as a viable financing option. As regulatory frameworks evolve and investor awareness grows, the landscape for Sukuk will likely become more competitive, presenting ample opportunities for both issuers and investors in the Islamic finance sector.
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