Introduction
The global Sukuk market has been experiencing substantial growth, driven by increasing demand for Sharia-compliant financial instruments. As of 2022, the global Sukuk market size was estimated at USD 600 billion, with expectations to grow at a CAGR of 10% through 2026. The rise in Islamic finance, particularly in regions like the Middle East and Southeast Asia, has led to an uptick in large Sukuk issuances, including amortization structures, which provide investors with predictable cash flows. This report focuses on the “Bond Balloon Large Sukuk Islamic Amortization 2026,” highlighting the top 20 entities shaping this market.
1. Saudi Arabia
Saudi Arabia is one of the largest issuers of Sukuk globally, with total issuances surpassing USD 200 billion as of 2023. The Kingdom has been actively diversifying its economy through its Vision 2030 initiative, leading to increased Sukuk offerings to finance infrastructure and energy projects.
2. United Arab Emirates (UAE)
The UAE has established itself as a financial hub for Islamic finance, with Sukuk issuances reaching approximately USD 60 billion in 2022. Abu Dhabi and Dubai are at the forefront, promoting large-scale projects funded through Sukuk, which attracts both local and international investors.
3. Malaysia
Malaysia is a pioneer in the Sukuk market, holding a significant market share of over 60% in global Sukuk issuances. The Malaysian government has issued Sukuk worth USD 200 billion to finance its development projects, solidifying its position as a leader in Islamic finance.
4. Indonesia
Indonesia has been increasing its Sukuk offerings, with total issuances of around USD 20 billion in 2021. The government aims to finance infrastructure projects, with a growing appetite for large Sukuk that can attract both local and foreign investment.
5. Turkey
Turkey’s Sukuk market has grown substantially, reaching around USD 20 billion as of 2022. The Turkish government has issued various Sukuk to support its budget and infrastructure needs, appealing to both domestic and international Islamic investors.
6. Qatar
Qatar has issued Sukuk worth approximately USD 30 billion, focusing on financing major infrastructure projects in preparation for the FIFA World Cup 2022. The country’s emphasis on large Sukuk issuances has attracted significant foreign direct investment.
7. Bahrain
Bahrain, with a robust Islamic banking sector, has issued Sukuk worth nearly USD 10 billion. The country serves as a regional hub for Islamic finance, leveraging its frameworks to attract large Sukuk issuances from various sectors.
8. Oman
Oman has recently expanded its Sukuk offerings, with issuances of around USD 5 billion. The government is focusing on diversifying its economy and has committed to using Sukuk as a financing tool for development projects.
9. Pakistan
Pakistan has issued Sukuk worth over USD 8 billion, primarily to finance infrastructure and energy projects. The government’s focus on leveraging Islamic finance has opened up new avenues for large Sukuk issuances in the country.
10. Egypt
Egypt’s Sukuk market is emerging, with recent issuances reaching around USD 3 billion. The government is working on regulations to enhance the Sukuk framework, aiming to attract larger investments through amortization structures.
11. Brunei
Brunei has established itself in the Sukuk market with issuances totaling around USD 1 billion. The country’s focus on sustainable development has led to increased interest in green Sukuk, attracting larger investors.
12. Kuwait
Kuwait’s Sukuk market is valued at approximately USD 10 billion. The government is increasingly utilizing Sukuk for financing development projects, making it a key player in the Islamic finance landscape.
13. Bangladesh
Bangladesh has issued Sukuk worth around USD 2 billion, primarily to fund its infrastructure projects. The government is looking to expand its Islamic finance sector, promoting larger Sukuk issuances.
14. South Africa
South Africa has recently entered the Sukuk market with issuances of around USD 1 billion. The country is exploring opportunities in Islamic finance to attract foreign investment and finance infrastructure development.
15. Jordan
Jordan has issued Sukuk worth approximately USD 1 billion in recent years. The government is exploring the potential of Sukuk to finance social infrastructure projects, appealing to ethical investors.
16. Nigeria
Nigeria’s Sukuk market has shown promise with issuances reaching USD 4 billion. The government aims to use Sukuk to finance critical infrastructure, tapping into the growing interest in Islamic finance.
17. Morocco
Morocco has issued Sukuk worth around USD 1.5 billion, focusing on infrastructure financing. The country is working on regulatory frameworks to enhance the attractiveness of its Sukuk market.
18. Senegal
Senegal has recently entered the Sukuk market with an issuance of approximately USD 500 million. The government is keen on using Sukuk to finance development projects and attract Islamic investors.
19. Tunisia
Tunisia has issued its first Sukuk worth USD 700 million as part of its efforts to diversify funding sources. The government is exploring Sukuk to finance infrastructure and social projects.
20. Afghanistan
Afghanistan is beginning to explore Sukuk as a financing option, with potential issuances projected at USD 300 million. The focus is on leveraging Islamic finance to support rebuilding efforts and attract international investment.
Insights
The global Sukuk market is poised for significant growth, with projections indicating an increase to USD 1 trillion by 2026. Key trends include the rising popularity of green Sukuk and a shift towards amortization structures, which provide predictable returns. Countries like Malaysia and the UAE continue to lead the charge, while emerging markets are increasingly adopting Sukuk as a viable financing option. As of 2023, the issuance of Sukuk worldwide has already surpassed USD 150 billion, indicating robust interest from both institutional and retail investors. The increasing acceptance of Islamic finance principles is likely to further boost Sukuk market growth, making it a focal point for future investment strategies.
Related Analysis: View Previous Industry Report
