Introduction
The global Sukuk market has been experiencing remarkable growth in recent years, particularly following the COVID-19 pandemic. According to a report by the Islamic Financial Services Board (IFSB), the global Sukuk issuance reached approximately $140 billion in 2021, reflecting an increase of over 20% from the previous year. This surge can be attributed to a rising demand for Sharia-compliant investment instruments as investors seek ethical alternatives amid economic uncertainties. As we look toward 2026, the Sukuk market is projected to expand further, driven by increased participation from Islamic banks and financial institutions, as well as growing infrastructure projects in member countries.
Top 20 Countries and Companies in the Sukuk Market (2026)
1. **Saudi Arabia**
With an estimated Sukuk market size of $45 billion, Saudi Arabia remains the largest issuer of Sukuk globally. The country has leveraged Sukuk to fund various mega projects under its Vision 2030 initiative, significantly boosting its economic diversification efforts.
2. **Malaysia**
Malaysia’s Sukuk market is projected to reach $30 billion by 2026, making it one of the most developed Sukuk markets in the world. The country continues to innovate with its Sukuk structures, appealing to both local and international investors.
3. **United Arab Emirates**
The UAE’s issuance of Sukuk is expected to grow to $25 billion by 2026. The Emirates have seen increased participation from private-sector issuers, which enhances the depth of its Sukuk market.
4. **Indonesia**
Indonesia’s Sukuk market has expanded significantly, with a projected size of $20 billion by 2026. The government has issued various Sukuk to finance infrastructure projects, contributing to its economic stability.
5. **Turkey**
Turkey’s Sukuk issuance is estimated to reach $15 billion by 2026. The country has actively promoted Sukuk as an alternative financing method for both domestic and international investors.
6. **Pakistan**
With a projected Sukuk market size of $10 billion, Pakistan has increasingly tapped into Islamic finance to fund its fiscal deficits and infrastructure projects, thus enhancing its economic resilience.
7. **Bahrain**
Bahrain’s Sukuk market is anticipated to grow to $8 billion by 2026. The country remains a key player in the Islamic finance sector, attracting investors with its robust regulatory framework.
8. **Kuwait**
Kuwait’s Sukuk issuance is projected to reach $6 billion by 2026. The country has seen a rise in Sukuk offerings from both the public and private sectors, enhancing its market competitiveness.
9. **Qatar**
Qatar’s Sukuk market size is estimated at $5 billion by 2026. The country is actively utilizing Sukuk for financing its ambitious infrastructure projects ahead of major events like the FIFA World Cup.
10. **Egypt**
Egypt has recently entered the Sukuk market, with projections indicating a potential size of $4 billion by 2026. The government aims to diversify its funding sources to support economic growth.
11. **Oman**
Oman’s Sukuk market is expected to reach $3 billion by 2026, bolstered by government initiatives aimed at developing Islamic finance in the sultanate.
12. **Jordan**
Jordan’s Sukuk market is projected to grow to $2 billion by 2026. The country is increasingly focusing on alternative financing methods to support its economic recovery.
13. **Morocco**
Morocco’s Sukuk market is forecasted to reach $1.5 billion by 2026, driven by government efforts to promote Islamic finance and attract foreign investment.
14. **Tunisia**
Tunisia’s Sukuk issuance is expected to be around $1 billion by 2026. The government has initiated several reforms to enhance its Islamic finance landscape.
15. **Bangladesh**
Bangladesh’s Sukuk market is projected to reach $800 million by 2026 as the government seeks to tap into Islamic finance to fund infrastructure and development projects.
16. **Nigeria**
Nigeria’s Sukuk market is expected to grow to $700 million by 2026. The issuance of Sukuk is part of the country’s strategy to diversify its funding sources.
17. **South Africa**
South Africa is seeing increased interest in Sukuk, with projections suggesting a market size of $600 million by 2026. The nation is working to develop its Islamic finance sector to attract investment.
18. **Kazakhstan**
Kazakhstan’s Sukuk market is estimated at $500 million by 2026. The country is leveraging Sukuk to enhance its infrastructure and attract foreign investment.
19. **Lebanon**
Lebanon’s Sukuk market is projected to reach $400 million by 2026. The country’s economic challenges have prompted a search for alternative financing through Islamic instruments.
20. **Algeria**
Algeria has recently begun exploring Sukuk issuance, with expectations of reaching $300 million by 2026. The government aims to diversify its financing options and stimulate economic growth.
Insights
The Sukuk market is anticipated to continue its upward trajectory, with a projected issuance reaching approximately $200 billion by 2026. This growth is largely fueled by government initiatives aimed at developing infrastructure and diversifying economies in Islamic nations. As countries increasingly recognize the potential of Islamic finance, the demand for Sukuk is expected to rise. The global Sukuk market demonstrates resilience, adapting to post-pandemic realities while providing investors with ethical investment opportunities. According to the Global Islamic Finance Report, the total Islamic finance assets are projected to cross $5 trillion by 2026, further solidifying the role of Sukuk in the global financial landscape.
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