Sukuk Market Report 2026

The sukuk market size has grown rapidly in recent years. It will grow from $1.29 trillion in 2025 to $1.53 trillion in 2026 at a compound annual growth rate (CAGR) of 18.7%. The growth in the historic period can be attributed to expansion of islamic banking systems, increasing demand for shariah-compliant investments, sovereign funding diversification needs, development of regulatory frameworks for sukuk issuance, growth of middle east capital markets.

The sukuk market size is expected to see rapid growth in the next few years. It will grow to $3.0 trillion in 2030 at a compound annual growth rate (CAGR) of 18.2%. The growth in the forecast period can be attributed to increasing global demand for ethical investments, rising integration of sustainability-linked sukuk, expansion of cross-border sukuk issuance, growing participation of non-islamic investors, increased digitization of islamic capital markets. Major trends in the forecast period include growing issuance of green and social sukuk, rising adoption of digital sukuk platforms, expansion of sovereign sukuk programs, increasing structuring of hybrid sukuk instruments, enhanced transparency in shariah compliance.

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.

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).

In July 2025, National Bank of Ras Al Khaimah (P.S.C.), a UAE-based bank, partnered with National Bonds to join the Al Manassah fintech platform for issuing, subscribing, and redeeming Sukuk (Islamic bonds). Through this collaboration, the companies aim to expand market access, enhance operational efficiency, and enable seamless, automated Sukuk transactions for both retail and corporate customers. National Bonds Corporation (NBC) is a UAE-based company that offers Sukuk-related products and services.

Major companies operating in the sukuk market 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, 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 2025. The regions covered in the sukuk market report are Asia-Pacific, South East Asia, 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, Taiwan, 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.

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