Introduction
The global bond market is witnessing a significant shift, with a growing emphasis on Islamic finance frameworks, particularly through instruments like Sukuk. The European Investment Bank (EIB) and the Islamic Development Bank are at the forefront of this evolution, aligning with sustainable development goals. According to the Global Sukuk Market report, the total Sukuk issuance reached approximately $155 billion in 2022, reflecting a compound annual growth rate (CAGR) of 8.9% projected through 2026. These trends are essential for businesses and finance professionals to understand as they navigate the evolving landscape of Islamic finance.
Top 20 Bond Supranational EIB Sukuk Islamic World Bank 2026
1. European Investment Bank (EIB)
The EIB has issued Sukuk bonds totaling €1.5 billion in recent years, focusing on sustainable projects within the EU. Their involvement signifies a growing recognition of Islamic finance in European markets.
2. Islamic Development Bank (IsDB)
IsDB has been a key player in the Sukuk market with issuances exceeding $20 billion since its inception. The bank aims to support member countries’ socio-economic development through Sharia-compliant financing.
3. Indonesia
Indonesia has emerged as a leading issuer of Sukuk, with a market share of approximately 40% in global Sukuk issuance. The country issued $12 billion in Sukuk bonds in 2022, focusing on infrastructure and social projects.
4. Malaysia
Malaysia’s Sukuk market is valued at over $200 billion, making it a global leader. The country has consistently issued around $15 billion annually, targeting both domestic and international investors.
5. Saudi Arabia
Saudi Arabia has issued Sukuk worth over $60 billion in recent years, with a substantial portion allocated to Vision 2030 initiatives. The government is leveraging Islamic finance to diversify its economy.
6. UAE
The UAE’s Sukuk market reached $50 billion, with Dubai issuing $9 billion in 2022 alone. The emirate aims to become a global hub for Islamic finance, attracting significant foreign investment.
7. Qatar
Qatar has issued Sukuk bonds totaling $30 billion, with a strong focus on financing infrastructure projects. The country’s financial market is increasingly seen as a stable investment environment for Sukuk.
8. Bahrain
Bahrain’s Sukuk market is valued at around $10 billion, offering various issuance types. The country plays a central role in the GCC’s Islamic finance landscape, promoting regulatory frameworks conducive to growth.
9. Turkey
Turkey’s Sukuk issuance has reached approximately $15 billion, with a focus on domestic infrastructure. Its strategic location as a bridge between Europe and Asia enhances its relevance in global Islamic finance.
10. Pakistan
Pakistan has issued Sukuk worth around $5 billion in recent years, focusing on public sector development. The country is taking steps to enhance its Islamic finance regulatory framework to attract more investments.
11. Egypt
Egypt’s Sukuk market is growing, with recent issuances totaling $1.5 billion, primarily aimed at financing development projects. The government is working on regulatory enhancements to promote Sukuk.
12. Oman
Oman has issued Sukuk bonds worth around $3 billion, focusing on public financing. The Sultanate aims to diversify its economy through Islamic finance solutions.
13. Jordan
Jordan’s Sukuk market has reached $1 billion, with recent issuances targeting infrastructure and social development. The country is developing its Islamic finance framework to boost investment.
14. Morocco
Morocco has issued Sukuk worth approximately $1 billion, primarily to fund renewable energy projects. The nation is working on legal frameworks to promote Sukuk and attract international investors.
15. Nigeria
Nigeria’s Sukuk market is burgeoning, with issuances exceeding $1.5 billion. The country is focusing on infrastructure development, appealing to both domestic and international investors.
16. South Africa
South Africa has issued Sukuk bonds worth around $500 million, focusing on public infrastructure. The country’s Islamic finance market is gradually gaining traction among investors.
17. Bangladesh
Bangladesh has recently entered the Sukuk market with issuances totaling $1 billion. The government is exploring Sharia-compliant financing to support its development agenda.
18. Brunei
Brunei’s Sukuk market is valued at approximately $300 million, with issuances targeted primarily at domestic investors. The Sultanate is working to enhance its Islamic finance offerings.
19. Kuwait
Kuwait has issued Sukuk worth around $2 billion, focusing on public sector financing. The country is leveraging Islamic finance to diversify its economic structure and attract foreign investments.
20. Singapore
Singapore has issued Sukuk bonds totaling about $4 billion, establishing itself as a key player in the Asian Islamic finance landscape. Its robust regulatory framework supports the growth of Sukuk.
Insights
The bond market, particularly in the context of Sukuk, is poised for significant growth, driven by increasing demand for Sharia-compliant financing solutions. The Islamic finance sector is expected to grow at a CAGR of 10% through 2026, with Sukuk issuance projected to surpass $200 billion globally. This growth is fueled by regulatory frameworks in various countries that encourage Sukuk issuances, coupled with a rising awareness of sustainable investment opportunities. As countries like Indonesia, Malaysia, and Saudi Arabia continue to dominate the market, emerging economies are increasingly tapping into Sukuk to fund development and infrastructure projects, reflecting a broader trend towards ethical and sustainable finance.
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