Sukuk Global Market Report 2025

An Islamic financial instrument known as a sukuk, or commonly referred to as an 'Islamic bond' or 'sharia-compliant bond,' represents an ownership stake in a permissible portfolio of existing or future assets. Its primary purpose is to generate capital for a business entity.

Various types of sukuk exist, including murabahah sukuk, salam sukuk, istisna sukuk, ijarah sukuk, musharakah sukuk, mudarabah sukuk, hybrid sukuk, among others. For instance, murabahah sukuk is a form of Islamic financing wherein the buyer and seller agree on the cost and markup of an asset, enabling the purchase and resale of an item at a mutually agreed-upon price inclusive of profit. These sukuk are transacted in major currencies such as the Turkish lira, Indonesian rupiah, Saudi riyal, Kuwaiti dinar, Malaysian ringgit, United States dollar, and others. They are issued by various entities, including sovereign bodies, corporations, financial institutions, quasi-sovereign organizations, and others in the financial landscape.

The sukuk market research report is one of a series of new reports from The Business Research Company that provides sukuk market statistics, including the sukuk industry global market size, regional shares, competitors with a sukuk market share, detailed sukuk market segments, market trends and opportunities, and any further data you may need to thrive in the sukuk industry. This sukuk market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The sukuk market size has grown exponentially in recent years. It will grow from $1080.62 billion in 2024 to $1296.82 billion in 2025 at a compound annual growth rate (CAGR) of 20.0%. The growth in the historic period can be attributed to islamic finance growth, diversification of funding sources, infrastructure development, government initiatives, global sukuk issuance, increased cross-border transactions.

The sukuk market size is expected to see rapid growth in the next few years. It will grow to $2559.79 billion in 2029 at a compound annual growth rate (CAGR) of 18.5%. The growth in the forecast period can be attributed to global economic recovery, belt and road initiative, sustainable and green sukuk, islamic fintech growth, diversity of sukuk structures, wealth management demand. Major trends in the forecast period include innovation in sukuk structures, digitalization of sukuk issuance, enhanced regulatory frameworks, partnerships and cross-border collaboration, private sector participation.

The swift urbanization occurring in Middle Eastern countries is anticipated to drive the growth of the sukuk market in the future. Urbanization refers to the gradual shift of a nation's population from rural to urban areas, leading to a faster increase in the proportion of urban residents compared to rural residents. This urbanization generates a demand for infrastructure investment, which in turn fuels economic growth through various means, including reducing transaction costs and enhancing productivity. In the realm of infrastructure development, sukuk serves as a popular and highly effective method for governments to raise funds both locally and internationally through a sharia-compliant process that avoids interest payments for national development. For example, in June 2024, the Baker Institute, a U.S.-based non-profit government organization, reported that the population of Arab countries reached around 465 million. The region's urban population is projected to grow from 279 million to approximately 362 million by 2035. This growth necessitates investments in education, infrastructure, and governance frameworks to create an environment favorable for sustainable urban development. Thus, the rapid urbanization in Middle Eastern countries is propelling the growth of the sukuk market.

The sukuk market is expected to experience growth fueled by the increasing demand for Islamic finance. Islamic finance involves managing money and financial activities in adherence to the moral principles and practices of the Islamic religion. Sukuk, as a component of Islamic finance, offers a Sharia-compliant financing option, promotes risk-sharing, facilitates infrastructure development, and provides opportunities for global growth and diversification of funding sources. According to S&P Global in October 2022, the global Islamic finance industry is projected to expand by 10%-12% in 2021-2022. Additionally, the takaful sector is expected to see a rise of 5%-10%, and there may be some growth in the funds business as investors seek yield. This growing demand for Islamic finance plays a pivotal role in driving the growth of the sukuk market.

Leading companies in the sukuk market are concentrating on sustainable and innovative financial instruments, such as green and social sukuk, to engage a wider array of ethical investors while supporting initiatives that align with environmental and social objectives. A Sharia-compliant investment fund is a financial instrument that follows Islamic law, which prohibits interest and invests in ethical enterprises while avoiding sectors related to alcohol, gambling, and other forbidden activities. For example, in September 2024, Al Baraka Capital, an Islamic financial services company based in Bahrain Bay, introduced the first Sharia-compliant investment fund with USD 4.11 million (EGP 200 million) in financing for 20 small businesses in the industrial sector in exchange for a share of the revenues. This fund employs Sukuk, which are Islamic financial certificates akin to bonds but compliant with Sharia law. Sukuk signify ownership in tangible assets or projects, enabling investors to earn returns without contravening Islamic prohibitions against interest (riba).

Innovation in financial instruments is a key focus for major companies in the Sukuk market, with the introduction of innovative solutions such as Sukuk ETFs to enhance their market presence. Sukuk ETFs are exchange-traded funds that track the performance of a sukuk index, offering investors exposure to the sukuk market. In September 2023, HSBC Asset Management launched the HSBC Global Sukuk UCITS ETF, Europe's first global sukuk ETF. This ETF, listed on the London Stock Exchange, tracks the FTSE IdealRatings Investment Grade index, providing global exposure to sukuk or Islamic bonds. With a total expense ratio (TER) of 0.70%, HSBC aims to meet the growing demand for Islamic passive products worldwide, catering to both standalone investments and components of larger multi-asset portfolios adhering to Shariah principles.

In October 2022, AI Rajhi Bank Malaysia (ARBM), a Saudi Arabian bank, forged a partnership with Nomura Asset Management Malaysia for an undisclosed amount. This collaboration is geared towards achieving the status of Malaysia's leading Islamic innovation bank, offering Shariah-compliant investments. Nomura Asset Management Malaysia Sdn Bhd, a Malaysia-based investment management firm, contributes to this strategic alliance, emphasizing the evolving landscape of Islamic finance.

Major companies operating in the sukuk market include Abu Dhabi Islamic Bank PJSC, Al Baraka Group BSC, Al Rajhi Bank, Banque Saudi Fransi, Dubai Islamic Bank, Hongkong and Shanghai Banking Corporation, Kuwait Finance House, Malayan Banking Berhad, Qatar International Islamic Bank, Ajman Bank, Citi Islamic Investment Bank, Emirates NBD Bank PJSC, Standard Chartered plc, Qatar Islamic Bank, First Abu Dhabi Bank, Gulf International Bank, Islamic Development Bank, Kuwait International Bank, Mashreq Bank, Oman Arab Bank, Sharjah Islamic Bank, Alinma Bank, Bank AlJazira, Bank Islam Brunei Darussalam, Bank Muamalat Malaysia Berhad, Bank Negara Indonesia, Bank of London and The Middle East, Dubai Financial Market, Islamic Financial Services Board, Nasdaq Dubai, London Stock Exchange

Saudi-Arabia was the largest region in the sukuk market in 2024. The regions covered in the sukuk market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the sukuk market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sukuk market consists of sales of true certificates, alternative civil law structures, investors' credit exposure, and asset-backed. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Sukuk Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on sukuk market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for sukuk ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The sukuk market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Sukuk Type: Murabahah Sukuk; Salam Sukuk; Istisna Sukuk; Ijarah Sukuk; Musharakah Sukuk; Mudarabah Sukuk; Hybrid Sukuk; Other Sukuk Types
• 2) By Currency: Turkish Lira; Indonesian Rupiah; Saudi Riyal; Kuwaiti Dinar; Malaysian Ringgit; United States Dollar; Other Currencies
• 3) By Issuer Type: Sovereign; Corporate; Financial Institutions; Quasi-Sovereign; Other Issuer Types
• Subsegments:
• 1) By Murabahah Sukuk: Commodity Murabahah Sukuk; Asset-Backed Murabahah Sukuk
• 2) By Salam Sukuk: Agricultural Salam Sukuk; Industrial Salam Sukuk
• 3) By Istisna Sukuk: Construction Istisna Sukuk; Manufacturing Istisna Sukuk
• 4) By Ijarah Sukuk: Operating Ijarah Sukuk; Finance Ijarah Sukuk
• 5) By Musharakah Sukuk: Equity-Based Musharakah Sukuk; Project-Based Musharakah Sukuk
• 6) By Mudarabah Sukuk: Investment Mudarabah Sukuk; Short-Term Mudarabah Sukuk
• 7) By Hybrid Sukuk: Mixed Structure Sukuk; Multi-Tiered Sukuk
• 8) By Other Sukuk Types: Green Sukuk; Social Sukuk; Sukuk Al-Waqf
• Companies Mentioned: Abu Dhabi Islamic Bank PJSC; Al Baraka Group BSC; Al Rajhi Bank; Banque Saudi Fransi; Dubai Islamic Bank
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.