Introduction
The global Islamic finance market is experiencing significant growth, with the total market size reaching approximately $2.88 trillion in 2021, and it is projected to expand further at a compound annual growth rate (CAGR) of 10% through 2026. Among various instruments, Sukuk, particularly Bond Mandatory Convertible Sukuk, has gained traction due to its unique structure that blends debt and equity features. This trend is largely driven by the increasing demand for ethical investment options and the need for capital financing in the burgeoning economies of the Middle East and Southeast Asia.
Top 20 Bond Mandatory Convertible Sukuk Islamic Forced Equity 2026
1. Malaysia
Malaysia remains a leader in the Sukuk market, accounting for over 50% of the global Sukuk issuance. In 2021, Malaysia issued approximately $45 billion in Sukuk, reflecting its robust regulatory framework and market demand.
2. Saudi Arabia
Saudi Arabia’s Sukuk market is rapidly expanding, with total issuances reaching around $30 billion in 2022. The government’s push for Vision 2030 is expected to stimulate further growth, particularly in mandatory convertible Sukuk.
3. Indonesia
Indonesia is one of the largest issuers of Sukuk in Southeast Asia, with about $16 billion issued in 2021. The country’s Islamic finance sector is bolstered by a significant Muslim population, creating a strong demand for Sharia-compliant financial products.
4. United Arab Emirates (UAE)
The UAE’s Sukuk market has seen a steady increase in issuance, reaching approximately $20 billion in 2022. The Dubai Islamic Bank has been a notable issuer of mandatory convertible Sukuk, contributing to the country’s market share.
5. Qatar
Qatar has emerged as a key player in the Sukuk industry, with total Sukuk issuances hitting $12 billion in 2022. The Qatar Investment Authority has been instrumental in promoting forced equity Sukuk investments.
6. Turkey
Turkey’s Sukuk market has grown significantly, with issuances reaching $9 billion in 2021. The government has launched initiatives to diversify its financial instruments, including mandatory convertible Sukuk.
7. Bahrain
Bahrain is a prominent financial hub in the Islamic finance industry, with Sukuk issuances totaling $8 billion. The Central Bank of Bahrain has encouraged the use of forced equity structures to attract foreign investments.
8. Pakistan
Pakistan issued approximately $5 billion in Sukuk in 2021, with growing interest in Islamic financing as a sustainable development tool. The State Bank of Pakistan supports the market through various incentives.
9. Egypt
Egypt’s Sukuk market is emerging, with total issuances reaching $4 billion in 2022. The government’s efforts to introduce mandatory convertible Sukuk could attract significant investment flows.
10. Oman
Oman has issued around $3 billion in Sukuk recently, with plans for mandatory convertible Sukuk in the pipeline to diversify its financing options amid economic reforms.
11. Jordan
Jordan’s Islamic finance sector has seen Sukuk issuances of approximately $2 billion, mainly driven by local banks. The country is exploring the potential of forced equity Sukuk to enhance funding.
12. Kuwait
Kuwait issued about $2.5 billion in Sukuk in 2022, focusing on infrastructure and development projects. The country’s regulatory environment supports the growth of mandatory convertible Sukuk.
13. Brunei
Brunei’s Sukuk issuance reached $1.5 billion, with efforts to promote ethical investments. The government is considering mandatory convertible Sukuk as a means of raising capital for national projects.
14. South Africa
South Africa has issued around $1 billion in Sukuk, with a growing interest in Islamic finance among its diverse population. The country is exploring innovative Sukuk structures, including forced equity options.
15. Bangladesh
Bangladesh is witnessing a surge in Sukuk, with issuances totaling $800 million in 2021. The government is looking to introduce mandatory convertible Sukuk to finance infrastructure projects.
16. Morocco
Morocco’s Sukuk market is developing, with total issuances of approximately $500 million. The country is working towards implementing forced equity Sukuk to align with its economic strategies.
17. Nigeria
Nigeria has issued Sukuk worth around $600 million, focusing on infrastructure development. The Islamic finance market is growing, with potential for mandatory convertible Sukuk to attract investments.
18. Senegal
Senegal’s Sukuk market has seen modest growth, with issuances reaching $300 million. The government is considering mandatory convertible Sukuk to enhance its financing capabilities.
19. Maldives
Maldives issued approximately $150 million in Sukuk as part of its development financing. The country is exploring forced equity structures to attract foreign direct investments.
20. Afghanistan
Afghanistan’s Sukuk market is nascent, with limited issuances around $100 million. The potential for mandatory convertible Sukuk is being explored as a means to stabilize its economy.
Insights
The future of Bond Mandatory Convertible Sukuk in Islamic finance appears promising, with significant growth expected across key markets. As of 2022, the global Sukuk market is estimated to reach approximately $600 billion, driven by increasing demand for Sharia-compliant investment opportunities. The trend towards hybrid instruments like mandatory convertible Sukuk is likely to gain momentum as investors seek to balance risk and return in a volatile economic landscape. Furthermore, governments in various Islamic countries are recognizing the potential of forced equity Sukuk as a tool for infrastructure development and economic growth, suggesting an evolving market that is responsive to contemporary financial challenges.
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