Introduction
The global Islamic finance market has been experiencing remarkable growth, driven by an increasing demand for Sharia-compliant financial products. In 2021, the global Islamic finance sector was valued at approximately $3.37 trillion, with expectations to reach around $4 trillion by 2026. The sukuk market, which represents a significant segment of Islamic finance, has seen an annual growth rate of around 10%. This upward trajectory is fueled by both domestic and foreign issuers seeking to tap into the growing investor base looking for ethical investment opportunities.
Top 20 Foreign Sukuk Islamic Domestic Market Foreign Issuer 2026
1. Saudi Arabia
Saudi Arabia is a leading issuer of sukuk, with a market share of over 30% in the global Islamic bond market. In 2022, the Kingdom issued sukuk worth approximately $47 billion to finance various development projects.
2. Malaysia
Malaysia remains a prominent player in the sukuk market, accounting for around 55% of the global sukuk issuance. The country issued approximately $14.5 billion in sukuk in 2022, primarily for infrastructure and development financing.
3. Indonesia
Indonesia has emerged as a key issuer, with sukuk issuance reaching $16 billion in 2022. The government aims to issue $25 billion in sukuk by 2026, focusing on sustainable development projects.
4. United Arab Emirates (UAE)
The UAE has become a significant hub for sukuk issuance, with a total issuance of $10 billion in 2022. The market is expected to grow as more corporations seek to tap into Islamic financing.
5. Turkey
Turkey’s sukuk market is growing rapidly, with issuances reaching $3.5 billion in 2022. The Turkish government plans to issue more sukuk to finance public projects, targeting a total of $8 billion by 2026.
6. Bahrain
Bahrain is recognized for its robust Islamic finance sector, with sukuk issuances totaling $2 billion in 2022. The country aims to further develop its sukuk market, promoting foreign investments.
7. Pakistan
Pakistan issued approximately $1.7 billion in sukuk in 2022, focusing on financing infrastructure and energy projects. The government aims to increase sukuk issuance to $5 billion by 2026.
8. Qatar
Qatar’s sukuk market saw issuances of around $4 billion in 2022. The nation is expected to increase its issuance to $7 billion by 2026 to fund various infrastructure projects.
9. Egypt
Egypt has made strides in the sukuk market, with a total issuance of $1 billion in 2022. The government plans to issue sukuk worth $3 billion by 2026, targeting renewable energy projects.
10. Oman
Oman issued approximately $1 billion in sukuk in 2022, focusing on infrastructure development. The country’s total sukuk issuance is expected to reach $2 billion by 2026.
11. Jordan
Jordan’s sukuk market is emerging, with issuances reaching $500 million in 2022. The government aims to tap into the sukuk market more aggressively, targeting $1 billion by 2026.
12. Bangladesh
Bangladesh issued its first sukuk worth $100 million in 2022, marking its entry into the Islamic finance sector. The country is expected to increase sukuk issuance significantly by 2026.
13. Morocco
Morocco has issued sukuk worth $300 million in 2022, focusing on infrastructure financing. The government plans to enhance its sukuk framework, targeting $1 billion by 2026.
14. South Africa
South Africa issued sukuk valued at $500 million in 2022, primarily for public infrastructure. The market is projected to grow as the country looks to attract more Islamic investments.
15. Nigeria
Nigeria’s sukuk market saw a total issuance of $1 billion in 2022, with plans to expand to $2 billion by 2026. The focus remains on financing critical infrastructure projects.
16. Kuwait
Kuwait issued sukuk worth $800 million in 2022, mainly for public works projects. The country is aiming for a market expansion to $2 billion by 2026.
17. Kazakhstan
Kazakhstan’s sukuk issuance reached $400 million in 2022, with plans to increase this to $1 billion by 2026. The government is focusing on attracting foreign investments.
18. Azerbaijan
Azerbaijan issued its first sukuk worth $200 million in 2022, marking its entry into the Islamic finance arena. The country is expected to expand its sukuk offerings by 2026.
19. Bangladesh
Bangladesh issued its first sukuk worth $100 million in 2022, marking its entry into the Islamic finance sector. The country is expected to increase sukuk issuance significantly by 2026.
20. Maldives
Maldives issued $50 million in sukuk in 2022, focusing on tourism infrastructure. The government aims to expand its sukuk market to $200 million by 2026.
Insights
The sukuk market is anticipated to continue its robust growth trajectory, driven by increasing demand for ethical and Sharia-compliant investment options. By 2026, the total sukuk issuance is projected to surpass $300 billion globally, with emerging markets playing a crucial role in this expansion. Countries like Indonesia and Saudi Arabia are expected to lead the charge, while newer entrants like Bangladesh and Azerbaijan will contribute to diversifying the market. The focus on sustainable and green sukuk will likely increase, reflecting a growing trend toward responsible investing, which could account for approximately 20% of total sukuk issuance by 2026.
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