Introduction
The global sukuk market continues to expand, driven by increased demand for Sharia-compliant investment opportunities among both retail and institutional investors. As of 2023, the global sukuk issuance reached approximately $700 billion, with a projected growth rate of 10% annually over the next five years. The European Investment Bank (EIB) has taken significant strides in promoting Islamic finance, particularly with its sukuk offerings, which align with the evolving landscape of sustainable finance and social responsibility.
Top 20 Bond Supranational World Sukuk Islamic Bank EIB 2026
1. Malaysia
Malaysia remains the leading sukuk issuer globally, accounting for around 50% of the total market share. In 2022, the country issued approximately $40 billion in sukuk, highlighting its robust infrastructure financing and government-backed projects.
2. Saudi Arabia
Saudi Arabia has emerged as a major player with its sukuk market valued at $90 billion as of 2023. The Kingdom’s Vision 2030 initiative has spurred substantial investments in public-private partnerships, increasing sukuk issuance.
3. United Arab Emirates
The UAE’s sukuk market stands at around $60 billion. Dubai’s Islamic Bank issued a notable $1.5 billion sukuk in 2022, demonstrating the country’s commitment to diversifying its financial instruments.
4. Indonesia
Indonesia’s sukuk issuance reached $20 billion in 2022. The government actively supports Islamic finance, aiming for a target of $30 billion in sukuk by 2025 to fund infrastructure projects.
5. Qatar
Qatar’s sukuk market is valued at approximately $30 billion. The Qatar Central Bank’s issuance of a $2 billion sukuk in 2022 reflects the country’s strategic focus on funding sustainable development.
6. Turkey
Turkey’s sukuk market has been growing, reaching about $15 billion in 2023. The government has promoted Islamic finance as part of its broader economic strategy, aiming for a $5 billion issuance in 2024.
7. Bahrain
Bahrain’s sukuk issuance stands at $10 billion, with the country being home to several Islamic banks. The Central Bank of Bahrain issued a $1 billion sukuk in 2022, underscoring its commitment to Islamic finance.
8. Pakistan
Pakistan’s sukuk market is valued at approximately $7 billion. The government issued a $1 billion sukuk in 2022, attracting significant foreign investment and bolstering its fiscal position.
9. Egypt
Egypt has recently entered the sukuk market, with a total issuance of $5 billion. The country plans to issue an additional $3 billion sukuk by 2025 to support its economic recovery efforts.
10. Oman
Oman has seen its sukuk market grow to about $3 billion. The government issued a $1 billion sukuk in 2022, aiming to finance infrastructure projects and enhance economic diversification.
11. Senegal
Senegal’s sukuk market is valued at $1 billion, with the government issuing its first sukuk in 2021. The country aims to expand its Islamic finance sector to support infrastructure development.
12. Morocco
Morocco’s sukuk issuance stands at $1.5 billion, with plans to issue more in the coming years. The government is keen on leveraging Islamic finance to fund social projects.
13. Jordan
Jordan’s sukuk market is approximately $1 billion, with the government issuing its first sukuk in 2023 to attract investment for public projects. The country aims to enhance its Islamic finance framework.
14. Afghanistan
Afghanistan’s sukuk market is in its nascent stages, with potential issuances anticipated in the future. The country’s Islamic banking sector is expected to grow as stability improves.
15. Bangladesh
Bangladesh has initiated its sukuk market with a total issuance of $1 billion in 2022. The government plans to issue more sukuk to support infrastructure and social projects.
16. Nigeria
Nigeria has issued approximately $1.5 billion in sukuk, focusing on funding infrastructure development. The government aims to increase its sukuk offerings to attract foreign investment.
17. Afghanistan
Afghanistan’s sukuk market is in its nascent stages, with potential issuances anticipated in the future. The country’s Islamic banking sector is expected to grow as stability improves.
18. South Africa
South Africa has entered the sukuk space with a total issuance of $500 million in 2021. The government is exploring further sukuk options to fund social and infrastructure projects.
19. Brunei
Brunei’s sukuk market is valued at $1 billion, with the government issuing a $500 million sukuk to finance public infrastructure. The country aims to enhance its Islamic finance sector.
20. EIB (European Investment Bank)
The EIB issued its first sukuk in 2022, raising €500 million to support sustainable projects across Europe. The bank plans to increase its sukuk offerings to enhance its role in promoting Islamic finance.
Insights
The sukuk market is forecasted to continue its upward trajectory, bolstered by increasing demand for ethical and sustainable investment options. With the global sukuk issuance projected to reach over $1 trillion by 2026, supranational institutions like the EIB are playing a pivotal role in this growth. The integration of Islamic finance into mainstream markets reflects a broader acceptance of these financial instruments. Such developments are expected to diversify funding sources for infrastructure and social projects worldwide. Notably, the issuance of green sukuk is becoming increasingly popular, with a projected market size of $200 billion by 2026, aligning with global sustainability goals.
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