Introduction
The global sukuk market has experienced significant growth, reflecting the increasing demand for Sharia-compliant investment options. As of 2022, the global sukuk market was valued at approximately $615 billion, with projections indicating a market size of $1 trillion by 2026. This rise is driven primarily by the issuance of sovereign sukuk, which has become a crucial financing tool for governments, particularly in the Middle East and Southeast Asia. In this report, we will examine the bond foreign market, focusing on sukuk issuances by Islamic issuers in the domestic sector projected for 2026.
Top 20 Bond Foreign Market Sukuk Islamic Issuer Domestic 2026
1. Saudi Arabia
Saudi Arabia is the largest issuer of sukuk globally, accounting for approximately 45% of the total market share. In 2022, the Kingdom issued around $27 billion in sukuk, primarily for infrastructure and development projects.
2. Malaysia
Malaysia remains a dominant player in the sukuk market, with a market share of about 30%. The country issued approximately $10 billion in sukuk in 2021, supporting its robust Islamic finance framework.
3. Indonesia
Indonesia’s sukuk market continues to grow, with a 2022 issuance of $12 billion. The government has actively promoted sukuk as a means to finance national development projects.
4. United Arab Emirates (UAE)
The UAE issued around $13 billion in sukuk in 2021, positioning itself as a regional hub for Islamic finance. The country’s diverse economy supports a vibrant sukuk market with various issuances from both public and private sectors.
5. Turkey
Turkey’s sukuk market is expanding, with issuances reaching $4 billion in 2021. The Turkish government has been actively issuing sukuk to finance infrastructure and public projects.
6. Qatar
Qatar’s sukuk issuances totaled approximately $6 billion in 2021. The country leverages sukuk for funding its significant infrastructure projects ahead of the FIFA World Cup 2022.
7. Bahrain
Bahrain has established a strong position in the sukuk market, with a 2021 issuance of $2 billion. The island nation serves as a financial hub for Islamic banking and finance.
8. Oman
Oman issued about $1.5 billion in sukuk in 2021. The government utilizes sukuk to diversify its funding sources and support economic diversification initiatives.
9. Pakistan
Pakistan’s sukuk market has seen issuances of around $1 billion in recent years. The government is increasingly using sukuk to finance its fiscal deficit and infrastructure projects.
10. Egypt
Egypt issued approximately $1 billion in sukuk in 2021, marking its entry into the sukuk market. The government aims to attract foreign investment through these Sharia-compliant instruments.
11. Jordan
Jordan’s sukuk issuance reached around $500 million in recent years. The country is focusing on sukuk to finance its budget deficit and development projects.
12. Nigeria
Nigeria has been active in the sukuk market, with issuances of approximately $1 billion. The country aims to utilize sukuk for infrastructure development and to cater to its growing Muslim population.
13. Senegal
Senegal has issued approximately $200 million in sukuk, focusing on financing development projects in the public sector. The government is keen to tap into the Islamic finance market.
14. South Africa
South Africa’s sukuk market is emerging, with the government issuing $500 million in 2022. This initiative is aimed at attracting Muslim investors and promoting Islamic finance.
15. Morocco
Morocco has recently entered the sukuk market, with a planned issuance of around $200 million. The government is exploring sukuk as a means to diversify its funding sources.
16. Brunei
Brunei has issued approximately $300 million in sukuk, focusing on financing its national development projects while promoting its Islamic finance sector.
17. Bangladesh
Bangladesh’s sukuk market is growing, with recent issuances of around $500 million aimed at financing infrastructure and social projects.
18. Algeria
Algeria has entered the sukuk market with planned issuances of $200 million to bolster its economic development projects.
19. Libya
Libya has been exploring sukuk as a financing option, with a focus on issuing around $100 million to support its recovery and development efforts.
20. Afghanistan
Afghanistan is starting to explore sukuk as a funding mechanism, with discussions around potential issuances of approximately $50 million to support reconstruction efforts.
Insights
The sukuk market is poised for robust growth, driven by the increasing acceptance of Islamic finance and the need for infrastructure development across various countries. With a projected global sukuk market size of $1 trillion by 2026, it is essential for countries to leverage sukuk as a financing tool. In particular, nations like Saudi Arabia, Malaysia, and Indonesia will continue to dominate the market, while emerging markets like Egypt and Pakistan are expected to see significant growth in their sukuk issuances. As Islamic finance becomes more mainstream, the alignment of sukuk with sustainable development goals is likely to attract more investors, further propelling market expansion.
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