Sukuk Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F

The Global Sukuk Market is anticipated to expand from USD 2.14 billion in 2025 to USD 4.41 billion by 2031, reflecting a compound annual growth rate of 12.81%. As Sharia-compliant financial instruments, sukuk signify ownership in underlying assets and are carefully designed to bypass the interest-centric transactions and excessive uncertainty typical of traditional bonds. This market growth is primarily driven by a rising worldwide appetite for ethical and socially conscious investments, strong government backing for Islamic finance, and major infrastructure initiatives in prominent Islamic nations. Highlighting this upward trajectory, the Islamic Financial Services Board reported a 25.6% surge in global sukuk issuances, reaching USD 230.4 billion in 2024.

Despite this positive outlook, ongoing changes in regulatory frameworks pose a significant obstacle to continued market growth, especially concerning the proposed Shariah Standard 62 by the Accounting and Auditing Organization for Islamic Financial Institutions. By requiring a transition from asset-based to asset-backed configurations, this new standard threatens to complicate legal ownership transfers and drive up structuring expenses across various regions.

Market Driver

The surging interest in Sharia-compliant financial tools significantly boosts the Global Sukuk Market by attracting a broader demographic of investors looking for ethical and socially responsible options. This expansion is fueled by both Muslim and non-Muslim participants who are drawn to the transparent risk-sharing mechanisms and asset-backed foundation of sukuk. A May 2025 Standard Chartered report noted that global Islamic finance assets hit USD 5 trillion in 2024, a 12% increase from the previous year. The vigorous growth within the wider Islamic finance sector naturally directs more capital into Sharia-aligned assets like sukuk, appealing to investors seeking competitive yields without compromising their ethical standards.

The escalating need to finance large-scale infrastructure and development projects serves as another major catalyst for the market, especially within key Islamic economies. Corporations and governments in these areas are increasingly turning to sukuk to bankroll extensive endeavors, from energy grids to transportation systems, thanks to their asset-based nature and suitability for long-term funding. Arab News reported in February 2026 that global sukuk issuance by supranational and sovereign entities climbed to nearly USD 28 billion in 2025, up from USD 20.5 billion in 2024, largely driven by infrastructure demands. Bolstering this trend, Bloomberg noted that outstanding debt in the global sukuk market exceeded USD 1 trillion in 2025, guaranteeing a steady stream of future issuances to fund ongoing economic modernization and diversification.

Market Challenge

Shifting regulatory frameworks pose a considerable hurdle to the continued growth of the global sukuk market. In particular, the Accounting and Auditing Organization for Islamic Financial Institutions has proposed Shariah Standard 62, which seeks to enforce a move from asset-based to asset-backed models. This mandatory transition brings added intricacies to the legal transfer of ownership and drives up the expenses associated with structuring these instruments in various regions.

These escalating costs and structural complexities directly impede market expansion by making the issuance process more difficult and costly for prospective organizations. Mandating true legal ownership of the underlying assets, rather than merely beneficial interests, requires much more complex operational and legal systems. Consequently, transaction timelines are extended, and the overall expense of launching new sukuk increases, which can restrict the frequency of new market offerings. While the International Islamic Liquidity Management Corporation reported USD 22.9 billion across 69 sukuk series in 2025 - demonstrating resilience in the face of these hurdles - the necessity to adapt to these new regulatory paradigms may still slow the market's long-term growth trajectory as issuers navigate the evolving requirements.

Market Trends

A major trend in the market is the rising focus on green and sustainable sukuk, which bridges Islamic finance doctrines with worldwide environmental, social, and governance goals. This shift caters to an increasing investor desire for Sharia-aligned tools that support socially conscious and ecologically friendly ventures, expanding the investor demographic far beyond conventional Islamic finance participants. These specialized instruments play a vital role in bankrolling sustainable infrastructure and renewable energy projects, as evidenced by an October 2025 announcement from the Islamic Development Bank detailing its successful EUR 500 million Green benchmark Sukuk issuance, reflecting robust market demand.

The growing digitization of sukuk trading and issuance represents another groundbreaking trend, utilizing modern technology to boost accessibility, transparency, and overall market efficiency. By integrating distributed ledger platforms, this movement simplifies previously labor-intensive and complicated procedures spanning from initial origination to final settlement. Furthermore, digital approaches can expand the pool of potential investors by lowering minimum capital requirements and facilitating fractional asset ownership. Illustrating this advancement, an April 2026 report by The National Law Review highlighted Qatar National Bank's launch of USD 500 million in digitally native notes in November 2025, marking a significant milestone for digital bond offerings in the Middle East and Africa.

Key Market Players

• Abu Dhabi Islamic Bank PJSC
• Al Baraka Banking Group
• Al-Rajhi Bank
• Banque Saudi Fransi
• Dubai Islamic Bank
• HSBC Holdings Plc
• Kuwait Finance House
• Malayan Banking Berhad
• Qatar International Islamic Bank
• RHB Bank Berhad

Report Scope

In this report, the Global Sukuk Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Sukuk Market, By Sukuk Type:

• Murabahah Sukuk
• Salam Sukuk
• Istisna Sukuk
• Ijarah Sukuk
• Musharakah Sukuk
• Mudarabah Sukuk
• Others

Sukuk Market, By Currency:

• Turkish Lira
• Indonesian Rupiah
• Saudi Riyal
• Kuwaiti Dinar
• Others

Sukuk Market, By Issuer Type:

• Sovereign
• Corporate
• Financial Institutions
• Quasi-Sovereign
• Others

Sukuk Market, By Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Sukuk Market.

Available Customizations

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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