Introduction
In recent years, the global bond market has witnessed significant transformations, particularly in the sectors of Commercial Mortgage-Backed Securities (CMBS), sukuk, and Islamic finance. According to the Global Islamic Finance Report 2022, the total assets of the Islamic banking sector reached approximately $3.2 trillion, with sukuk issuance alone accounting for around $600 billion. The increasing demand for ethical investment options has fueled interest in Islamic loans, while CMBS continues to play a vital role in real estate financing. The convergence of these financial instruments is expected to shape the landscape of financing in 2026 and beyond.
Top 20 Bond CMBS Property Sukuk Islamic Loans 2026
1. United States
The U.S. CMBS market remains the largest globally, accounting for approximately 30% of the total CMBS issuance. In 2022, CMBS issuance was around $90 billion, reflecting a steady recovery post-pandemic, driven by demand for commercial real estate investment.
2. Saudi Arabia
As a leader in the sukuk market, Saudi Arabia issued over $37 billion in sukuk in 2021, contributing to its burgeoning Islamic finance sector. The country is projected to increase its sukuk offerings, aiming for sustainable financing solutions by 2026.
3. Malaysia
Malaysia’s Islamic finance sector is robust, with its sukuk market valued at approximately $200 billion in 2022. The country is a pioneer in sukuk issuance, renowned for its diverse offerings, including green and sustainable sukuk.
4. UAE
The UAE’s sukuk market reached about $53 billion in 2021, benefiting from the government’s initiatives to foster Islamic finance. The region is expected to see continued growth in sukuk issuances, targeting infrastructure and social projects.
5. Indonesia
Indonesia has emerged as a significant player in the sukuk market, with issuances reaching around $20 billion in 2021. The government’s commitment to Islamic finance is evident in its plans to issue more sovereign sukuk to fund development projects.
6. Qatar
Qatar’s sukuk market has grown substantially, with issuances totaling approximately $10 billion in 2021. The country aims to diversify its economy through Islamic financing, focusing on real estate and public infrastructure projects.
7. Turkey
Turkey’s Islamic finance sector has seen rapid growth, with sukuk issuances reaching about $5 billion in 2021. The country is well-positioned to enhance its sukuk market, capitalizing on its unique geographic and economic position.
8. Pakistan
Pakistan issued around $2 billion in sukuk in 2021, with plans to expand its Islamic financing options for infrastructure and development. The government is actively working on creating a more conducive environment for sukuk investments.
9. Singapore
Singapore’s sukuk market, valued at approximately $15 billion, continues to attract international investors. The city-state’s strategic location and regulatory framework make it a leading hub for Islamic finance and sukuk issuance.
10. Hong Kong
With a growing Islamic finance sector, Hong Kong’s sukuk market reached around $1 billion in issuance in 2021. The region aims to enhance its appeal to Islamic investors and expand its market share in Asia.
11. Egypt
Egypt’s government issued sukuk worth approximately $1.5 billion in 2021, reflecting its commitment to financing through Islamic instruments. The country is expected to increase its sukuk offerings to support economic development.
12. Bahrain
Bahrain is a key player in the Islamic banking sector, with a sukuk market valued at around $25 billion. The country is recognized for its regulatory framework that supports the growth of Islamic finance.
13. Kuwait
Kuwait’s sukuk market reached approximately $5 billion in 2021. The country is focusing on developing Islamic financing solutions to meet the growing demand for ethical investment opportunities.
14. Oman
Oman is progressively expanding its sukuk market, with issuances around $2 billion in 2021. The government’s initiatives to diversify funding sources are expected to bolster its Islamic finance sector.
15. South Africa
South Africa’s Islamic finance sector is gaining traction, with sukuk issuances reaching approximately $1 billion. The country aims to attract foreign investment through innovative Islamic finance solutions.
16. Nigeria
Nigeria issued about $1.2 billion in sukuk in 2021, reflecting its efforts to finance infrastructure projects through Islamic instruments. The country is committed to expanding its Islamic finance offerings to meet domestic needs.
17. Morocco
Morocco’s nascent sukuk market has seen initial issuances around $300 million. The government is keen on developing Islamic finance to support economic growth and attract investments.
18. Jordan
Jordan’s sukuk market remains small, with issuances around $200 million. However, the government is exploring opportunities to expand its Islamic finance sector, focusing on infrastructure development.
19. Bangladesh
Bangladesh has initiated its foray into sukuk, issuing approximately $100 million in 2021. The government is looking to boost its Islamic finance sector to meet the growing demand for ethical investment.
20. Brunei
Brunei’s sukuk market is modest, with issuances around $500 million. The country is focused on enhancing its Islamic finance framework to attract more investments in the sector.
Insights
The bond, CMBS, sukuk, and Islamic loan markets are on the cusp of significant growth due to increasing demand for ethical and sustainable financing options. The global sukuk market is projected to reach approximately $1 trillion by 2026, driven by expanding Islamic finance initiatives in both developed and emerging markets. Moreover, the integration of green financing into sukuk structures is anticipated to attract environmentally conscious investors. As institutional investors increasingly prioritize sustainable investment strategies, the intersection of these financial instruments will be pivotal in shaping the global financing landscape in the coming years.
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