Bond Callable Discount Sukuk Islamic Call 2026
The global Islamic finance market continues to demonstrate robust growth, with sukuk (Islamic bonds) leading the way. In 2023, the sukuk market was valued at approximately $650 billion, with an expected compound annual growth rate (CAGR) of 10% through 2026. The appetite for sukuk is particularly strong among Middle Eastern and Southeast Asian countries, where Islamic finance principles are deeply rooted. Callable discount sukuk are gaining traction due to their flexibility and investor-friendly features, making them an attractive option for issuers and investors alike.
1. Malaysia
Malaysia is a leading player in the sukuk market, accounting for approximately 50% of global issuance. In 2022, the country issued $50 billion in sukuk, driven by government initiatives to promote Islamic finance.
2. Saudi Arabia
Saudi Arabia is the largest Islamic finance market in the Gulf Cooperation Council (GCC), with sukuk issuance reaching $34 billion in 2022. The kingdom’s Vision 2030 plan aims to diversify its economy, increasing demand for sukuk financing.
3. Indonesia
Indonesia’s sukuk market is rapidly expanding, with total issuances hitting $20 billion in 2022. The government’s efforts to finance infrastructure projects have led to increased interest in Islamic finance.
4. UAE
The United Arab Emirates saw sukuk issuances of approximately $18 billion in 2022, reflecting its status as a financial hub in the Middle East. The Dubai government has issued several callable sukuk to fund mega-projects.
5. Turkey
Turkey’s sukuk market is gaining momentum, with total issuances reaching $10 billion in 2022. The government has introduced various incentives to attract both domestic and international investors to the sukuk market.
6. Bahrain
Bahrain’s sukuk market, valued at $5 billion in 2022, plays a strategic role in the GCC. The Central Bank of Bahrain actively promotes the development of Islamic financial products, including callable sukuk.
7. Pakistan
Pakistan issued $4 billion in sukuk in 2022, primarily to finance infrastructure projects. The country is focusing on expanding its Islamic finance sector to attract foreign investment.
8. Qatar
Qatar’s sukuk market reached $6 billion in 2022, bolstered by government bonds and corporate issuances. The country is recognized for its stable regulatory environment, fostering sukuk growth.
9. Oman
Oman issued $2 billion in sukuk in 2022, marking a growing interest in Islamic finance. The government is exploring ways to diversify its funding sources through sukuk.
10. Egypt
Egypt’s sukuk market is emerging, with total issuances of $3 billion in 2022. The government aims to increase its reliance on Islamic finance to meet funding needs.
11. Morocco
Morocco’s sukuk market is nascent but growing, with a reported issuance of $1 billion in 2022. The country is exploring the potential of sukuk to finance public projects.
12. Kuwait
Kuwait’s sukuk market saw issuances of approximately $5 billion in 2022. The government and local corporations are increasingly opting for sukuk to diversify their funding sources.
13. Nigeria
Nigeria issued $1.5 billion in sukuk in 2022, targeting infrastructure development. The country is establishing a regulatory framework to encourage more sukuk issuances.
14. Bangladesh
Bangladesh’s sukuk market is emerging with an issuance of $500 million in 2022. The government is exploring sukuk as a viable alternative for financing development projects.
15. South Africa
South Africa’s sukuk market is gaining traction, with total issuances reaching $1 billion in 2022. The country is working to enhance its Islamic finance ecosystem to attract investors.
16. Brunei
Brunei’s sukuk market is small but stable, with total issuances around $300 million in 2022. The government promotes Islamic finance as part of its economic diversification strategy.
17. Singapore
Singapore’s sukuk market reached $2 billion in 2022. The city-state is a key hub for Islamic finance in Asia, drawing international issuers and investors.
18. Jordan
Jordan’s sukuk market is emerging, with a reported issuance of $500 million in 2022. The country is exploring the potential of sukuk to finance infrastructure projects.
19. Afghanistan
Afghanistan issued $200 million in sukuk in 2022, focusing on development projects. The government is keen to leverage Islamic finance for rebuilding efforts.
20. Lebanon
Lebanon’s sukuk market is underdeveloped, with limited issuances. However, the government is exploring opportunities to tap into Islamic finance to address economic challenges.
Insights
The callable discount sukuk market is poised for significant growth, driven by increasing demand in Islamic finance. As more countries recognize the benefits of sukuk for financing infrastructure and development projects, the market is expected to grow from $650 billion in 2023 to an estimated $1 trillion by 2026. Factors such as regulatory support and a growing appetite for ethical investment are likely to further enhance the appeal of sukuk. The trend towards sustainable financing will also play a pivotal role, as investors seek options aligned with their values. As the landscape evolves, the callable discount sukuk feature will become increasingly attractive to investors seeking flexibility and risk management.
Related Analysis: View Previous Industry Report
