Introduction
As the global Islamic finance market continues to grow, the bond convertible sukuk sector is increasingly gaining traction, particularly in regions with significant Muslim populations. In 2022, the global sukuk market was valued at approximately USD 600 billion, with expectations to surpass USD 1 trillion by 2026. This growth is fueled by rising demand for ethical investment options and innovative financial instruments, like convertible sukuk, which blend features of traditional bonds and equity, allowing investors to convert their holdings into equity under favorable conditions.
Top 20 Bond Convertible Sukuk Islamic Equity Conversion 2026
1. Malaysia
Malaysia is the largest issuer of sukuk globally, accounting for nearly 60% of the market share as of 2022. With a total issuance exceeding USD 200 billion, the country has established itself as a leader in Islamic finance, offering various convertible sukuk to attract foreign investments.
2. Saudi Arabia
Saudi Arabia has seen significant growth in its sukuk market, with total issuances reaching USD 70 billion in 2022. The Kingdom is focusing on diversifying its economy through the Vision 2030 initiative, which includes leveraging convertible sukuk to fund infrastructure projects.
3. Indonesia
Indonesia ranks third globally with a sukuk issuance of approximately USD 20 billion in 2022. The Indonesian government is actively promoting convertible sukuk to finance its development projects, particularly in renewable energy and infrastructure.
4. UAE
The UAE has emerged as a key player in the sukuk market, with total issuances reaching USD 40 billion in 2022. The Dubai Islamic Bank has introduced innovative convertible sukuk products to attract international investors, enhancing its financial landscape.
5. Turkey
Turkey’s sukuk market is expanding rapidly, with total issuances at USD 10 billion in 2022. The Turkish government is increasingly using convertible sukuk to finance public projects, reflecting its commitment to Islamic finance.
6. Qatar
Qatar’s sukuk market reached USD 20 billion in 2022, driven by significant investments in infrastructure. The Qatar Islamic Bank has been a major player in the convertible sukuk sector, offering flexible financing options for investors.
7. Bahrain
Bahrain has a well-established sukuk market, with total issuances around USD 5 billion in 2022. The Bahrain Islamic Bank is actively engaged in offering convertible sukuk, catering to both local and international investors.
8. Kuwait
Kuwait’s sukuk market had total issuances of approximately USD 3 billion in 2022. The country is focusing on developing its convertible sukuk offerings to diversify its investment portfolio and attract foreign capital.
9. Pakistan
Pakistan’s sukuk market is in its nascent stages, with total issuances at USD 2 billion in 2022. The government is exploring convertible sukuk as a means to finance infrastructure and development projects, tapping into the growing demand for Islamic financial instruments.
10. Egypt
Egypt has made strides in its sukuk market, with total issuances reaching USD 1 billion in 2022. The government is considering convertible sukuk to fund its development agenda, reflecting a shift towards Islamic financing.
11. Oman
Oman’s sukuk market is evolving, with total issuances at USD 1.5 billion in 2022. The Central Bank of Oman is exploring convertible sukuk options to boost its financial offerings and attract more investors.
12. Jordan
Jordan’s sukuk market is growing, with total issuances around USD 500 million in 2022. The government is keen on utilizing convertible sukuk to finance social and infrastructure projects, tapping into the Islamic finance sector.
13. Nigeria
Nigeria’s sukuk market reached USD 1 billion in 2022, driven by substantial infrastructure needs. The government is looking to convertible sukuk as a viable option to finance development while adhering to Islamic principles.
14. South Africa
South Africa has begun exploring sukuk issuance, with total issuances at USD 200 million in 2022. The government is considering convertible sukuk to enhance its funding options and meet the needs of its growing Muslim population.
15. Morocco
Morocco’s sukuk market is in its early stages, with total issuances of approximately USD 300 million in 2022. The government is focusing on convertible sukuk to finance social projects while attracting local and international investors.
16. Bangladesh
Bangladesh’s sukuk market is developing, with total issuances at USD 100 million in 2022. The government is exploring convertible sukuk to support its infrastructure projects and enhance investment opportunities.
17. Lebanon
Lebanon’s sukuk market is modest, with total issuances around USD 50 million in 2022. The government is considering convertible sukuk as part of its strategy to attract international investments amidst economic challenges.
18. Afghanistan
Afghanistan has a nascent sukuk market, with the potential for issuance around USD 30 million in 2022. The government is exploring convertible sukuk to attract investments for reconstruction and development.
19. Maldives
The Maldives has issued sukuk valued at USD 25 million in 2022. The government is considering convertible sukuk to finance tourism infrastructure, aiming to draw in foreign investments.
20. Azerbaijan
Azerbaijan’s sukuk market is growing slowly, with total issuances at USD 10 million in 2022. The government is exploring convertible sukuk options to diversify its financing sources and tap into Islamic finance.
Insights
The bond convertible sukuk market is poised for significant growth as global demand for Islamic finance continues to rise. This market is expected to witness an annual growth rate of approximately 12% through 2026, bolstered by increasing awareness of ethical investment options among investors. With countries like Malaysia and Saudi Arabia leading the way, the diversification of sukuk offerings—including convertible options—will play a crucial role in attracting both local and international investments. As the market adapts to evolving financial needs, the integration of convertible sukuk into broader financing strategies will likely become a hallmark of Islamic finance’s future.
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