Bond Istithmar Portfolio Sukuk Islamic Investment 2026
The global Sukuk market has been showing remarkable resilience and growth, with an estimated market size exceeding $500 billion in 2023. In the wake of increasing demand for Sharia-compliant investment opportunities, various countries and firms are actively participating in Sukuk issuances. The Islamic finance sector is projected to grow at a CAGR of 10% over the next few years, driven by a growing interest in ethical investment methodologies and the diversification of portfolios.
1. Saudi Arabia
Saudi Arabia dominates the Sukuk market, accounting for approximately 40% of the total issuance. In 2022, the country issued around $40 billion in Sukuk, reflecting its commitment to financing mega-projects and diversifying its economy beyond oil.
2. Malaysia
Malaysia is a key player in the Islamic finance sector, with Sukuk outstanding reaching over $200 billion. The country has been a pioneer in structuring various Sukuk types, contributing significantly to its 60% market share in the ASEAN region.
3. UAE
The UAE, particularly Dubai, is recognized for its innovative Sukuk offerings. The market value of Sukuk in the UAE reached $70 billion in 2023, driven by both corporate and sovereign issuances aimed at infrastructure development.
4. Indonesia
Indonesia’s Sukuk market is rapidly growing, with issuances hitting $15 billion in 2022. The government actively promotes Sukuk to fund infrastructure projects, contributing to its position as Southeast Asia’s largest Sukuk issuer.
5. Qatar
Qatar has emerged as a strong contender in the Sukuk space, with a total of $20 billion issued in 2022. The country utilizes Sukuk for various development projects, bolstering its financial stability and investment attractiveness.
6. Turkey
Turkey’s Sukuk market reached approximately $10 billion in 2023, with the government and companies increasingly opting for Islamic bonds to finance their projects. The growth in the sector is expected to continue as the country seeks to attract foreign investments.
7. Bahrain
Bahrain has a well-established Islamic finance sector with Sukuk issuances totaling $15 billion. The country is known for its regulatory framework that supports Sukuk transactions, making it a hub for Islamic finance in the region.
8. Oman
Oman has recently entered the Sukuk market, with issuances reaching $4 billion in 2022. The government is keen to use Sukuk for funding public sector projects, enhancing the nation’s infrastructure and services.
9. Kuwait
Kuwait’s Sukuk market has seen steady growth, with total issuances around $8 billion in 2022. The market is supported by both governmental and private sector initiatives, focusing on financing economic diversification.
10. Pakistan
Pakistan’s Sukuk issuances reached $5 billion in 2022, making it one of the emerging players in the Islamic finance landscape. The government has been utilizing Sukuk to finance deficits and development projects.
11. Egypt
Egypt has recently entered the Sukuk market, with total issuances reaching $2 billion in 2023. The government aims to attract foreign investment and finance infrastructure projects through Islamic financing.
12. South Africa
South Africa’s Sukuk market is relatively nascent but growing, with issuances around $1 billion in 2022. The government is exploring Sukuk as an alternative financing method to support infrastructure and social projects.
13. Bangladesh
Bangladesh has issued Sukuk worth $500 million to fund various public sector projects. The government is focusing on expanding its Islamic finance offerings to attract more investments.
14. Jordan
Jordan’s Sukuk market has totaled around $1 billion, primarily used for infrastructure financing. The country is keen to promote Islamic finance as part of its broader economic strategy.
15. Morocco
Morocco has recently initiated its Sukuk journey, issuing $300 million in 2023. The government aims to utilize Sukuk for social development projects and infrastructure improvements.
16. Nigeria
Nigeria’s Sukuk market is expanding, with total issuances of $1 billion in recent years. The country is leveraging Sukuk to fund critical infrastructure projects, enhancing economic growth prospects.
17. Maldives
The Maldives issued its first Sukuk worth $200 million in 2022, targeting infrastructure development and tourism enhancement. The move is expected to attract foreign investments in the tourism sector.
18. Brunei
Brunei has a small but growing Sukuk market, with issuances around $400 million. The government is promoting Sukuk to diversify its financing sources for development projects.
19. Azerbaijan
Azerbaijan has issued Sukuk worth $300 million to finance infrastructure initiatives. The government is looking to Islamic finance to support its economic development strategy.
20. Lebanon
Lebanon’s Sukuk market has seen limited activity, with recent issuances around $150 million. The country is exploring Sukuk as a means to stabilize its economy and finance public sector projects.
Insights
The Sukuk market is poised for continued growth, driven by increasing demand for Sharia-compliant investment instruments and the diversification of funding sources across various sectors. The global Sukuk issuance is projected to surpass $700 billion by 2026, supported by robust participation from countries like Saudi Arabia, Malaysia, and the UAE. As governments increasingly recognize the potential of Sukuk for financing development projects, the trend towards ethical investment is expected to gain momentum, enhancing the attractiveness of Islamic finance globally.
Related Analysis: View Previous Industry Report
