Sukuk Global Market Report 2024

The sukuk market size has grown rapidly in recent years. It will grow from $904.5 billion in 2023 to $1084.8 billion in 2024 at a compound annual growth rate (CAGR) of 19.1%. The expansion observed in the historical period can be credited to the growth of Islamic finance, the diversification of funding sources, infrastructure development efforts, government-led initiatives, the global issuance of sukuk, and a notable increase in cross-border transactions.

The sukuk market size is expected to see rapid growth in the next few years. It will grow to $2160.55 billion in 2028 at a compound annual growth rate (CAGR) of 18.8%. The anticipated growth in the forecast period can be linked to several factors such as the global economic recovery, the Belt and Road Initiative, the emergence of sustainable and green sukuk, the growth of Islamic fintech, the increasing diversity in sukuk structures, and rising demand in wealth management services. Key trends expected in this period include innovations in sukuk structures, the digitaliztion of sukuk issuance processes, improvements in regulatory frameworks, a surge in partnerships and cross-border collaborations, as well as heightened participation from the private sector.

The growth of the sukuk market is anticipated to be propelled by the rapid urbanization observed in Middle Eastern countries. Urbanization, marked by the gradual shift of a nation's population from rural to urban areas, creates a demand for infrastructure investment. This demand, in turn, stimulates economic growth by reducing transaction costs and enhancing productivity. Sukuk, as a sharia-compliant financial instrument, has become a popular and effective means for governments to raise funds locally and internationally for infrastructure development without resorting to interest-based financing. In October 2021, the Middle East Institute reported that nearly two-thirds of the Middle East's population resides in urban areas, surpassing the global average of just over half. Furthermore, data from the Brookings Institution in July 2022 indicated that urbanization rates in the developed world and middle-income nations in regions such as Latin America, Europe, the Middle East, and North Africa hover around 70%, with a rapid increase observed in other developing economies. This trend highlights how the rapid urbanization in Middle Eastern countries is a significant driver of the sukuk market's growth.

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.

Strategic partnerships emerge as a significant trend in the Sukuk market, with companies actively engaging in collaborations to fortify their positions. An illustrative example is the partnership formed in March 2021 between City Bank Capital Resources Limited, a Bangladesh-based investment banking company, and Bangladesh Export Import Company Limited (BEXIMCO), a Bangladeshi multinational conglomerate holding company. This collaboration led to the joint issuance of Tk 3,000 core worth of sukuk Al Istisna bonds, adhering to Islamic law. The objective of this partnership is to fund the construction of solar projects for Teesta Solar Limited and Korotoa Solar Limited. Another noteworthy collaboration occurred in June 2022, as Abu Dhabi Islamic Bank (ADIB), a UAE-based Islamic bank, joined forces with Visa Inc., a US-based financial services provider. This strategic partnership aims to drive digital payments growth in the UAE by providing customer-centric solutions to ADIB cardholders.

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 report are 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, Rashid Hussain Bhd Islamic Bank, Samba Financial Group SJSC, Ajman Bank, Citi Islamic Investment Bank, Emirates NBD Bank PJSC, Standard Chartered plc, Maybank Islamic Berhad, Qatar Islamic Bank, Commerce International Merchant Bankers Berhad, First Abu Dhabi Bank, Gulf International Bank, Islamic Development Bank, Kuwait International Bank, Mashreq Bank, National Bank of Abu Dhabi, Noor Bank, Oman Arab Bank, Sharjah Islamic Bank, Al Hilal 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 2023. 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.

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 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 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.


This product will be delivered within 3-5 business days.