Sukuk Market Outlook 2025-2034: Market Share, and Growth Analysis

The Sukuk Market is valued at USD 1 trillion in 2025 and is projected to grow at a CAGR of 18.5% to reach USD 4.6 trillion by 2034. <div id="info-graphic-id-2420395" class="zoom-product-info-graphic" ><a href="//www.researchandmarkets.com/content-images/2420/2420395/2/sukuk-market.png" data-id="2420395" data-width="1000" data-height="667" data-alt="Sukuk Market"> <img loading="lazy" class="product-info-graphic"data-src="//www.researchandmarkets.com/content-images/2420/2420395/1/sukuk-market.png" alt="Sukuk Market" width="600" height="400" title="Sukuk Market" onerror="this.onerror = null;this.src = '//www.researchandmarkets.com/content-images/ImageNotAvailable.png';" style="display:none"></a></div>

The sukuk market, representing Islamic-compliant financial instruments, continues to evolve as a prominent force in the global capital markets. Unlike conventional bonds, sukuk are structured to comply with Islamic Sharia principles by involving ownership in tangible assets or services, avoiding interest payments, and instead offering returns through profit-sharing. This framework appeals to both Muslim and non-Muslim investors looking for ethical and asset-backed investments. Over the past decade, sukuk has grown beyond its roots in Islamic finance hubs to gain traction globally, serving as a key financing tool for sovereign and corporate entities alike. Governments, especially in the Gulf Cooperation Council (GCC) and Southeast Asia, have increasingly relied on sukuk to fund economic diversification, infrastructure development, and public sector spending. As awareness and demand for responsible investment options rise, sukuk has solidified its position as a credible alternative to conventional debt instruments.

During 2024, the sukuk market witnessed notable developments driven by renewed investor confidence and evolving financing needs among issuers. Geopolitical stability in key regions, improved liquidity in emerging markets, and regulatory enhancements contributed to increased activity in the market. More issuers turned to foreign currency-denominated sukuk to diversify their funding sources, appealing to global investors seeking Sharia-compliant exposure. A growing emphasis on green and socially responsible finance further accelerated the development of ESG-linked sukuk, aligning Islamic finance principles with sustainability goals. The year also saw stronger participation from non-traditional markets exploring sukuk issuance for the first time, signaling a broader global acceptance of Islamic finance instruments. Additionally, financial technology began playing a larger role in simplifying sukuk issuance processes, creating more efficient transaction models and increasing market accessibility for a broader spectrum of investors and institutions.

As we look, the sukuk market is expected to continue expanding as governments and corporates seek alternative funding avenues amid changing global economic dynamics. With increasing infrastructure demands and a sustained push toward economic diversification in emerging economies, sukuk is set to remain a preferred financing option. Regulatory reforms are anticipated to further harmonize market standards, supporting cross-border transactions and encouraging participation from international investors. The growing integration of ESG frameworks is likely to further elevate the appeal of sukuk, particularly among investors prioritizing ethical finance. Furthermore, the digitization of Islamic finance will gain pace, with blockchain and fintech platforms expected to enhance issuance efficiency and transparency. However, the sector may face headwinds due to evolving Sharia interpretations and varying regulatory approaches across jurisdictions, which could create uncertainties in sukuk structuring and market alignment. Strategic collaboration between regulators, financial institutions, and Sharia scholars will be essential to sustain growth momentum and reinforce market resilience.

Key Insights: Sukuk Market- Growth of ESG-Linked Sukuk: Issuers are increasingly structuring sukuk with environmental or social objectives, aligning with global sustainability goals. This trend appeals to investors focused on responsible finance while resonating with the ethical principles at the heart of Islamic financial systems.- Expansion into Non-Traditional Markets: Countries beyond the traditional Islamic finance hubs are exploring sukuk issuance to attract new capital and diversify financial offerings, expanding the global footprint of Sharia-compliant instruments.
- Regulatory Standardization Efforts: Regulatory bodies are prioritizing uniformity in sukuk frameworks, aiming to reduce fragmentation and increase market trust. Consistent standards help streamline issuance processes and attract foreign investment.- Technology-Driven Issuance Models: Digital solutions, including blockchain and fintech platforms, are transforming sukuk issuance by making the process more efficient, reducing costs, and increasing transparency for issuers and investors alike.
- Convergence with Conventional Markets: Sukuk is increasingly being integrated into mainstream capital markets, with growing recognition from global institutional investors who view them as credible, risk-aligned alternatives to conventional bonds.- Infrastructure and Development Needs: Governments are utilizing sukuk to fund large-scale infrastructure and public sector projects in sectors like transportation, healthcare, and energy, in line with long-term national development plans.
- Rising Demand for Ethical Finance: Investors are increasingly seeking investments that align with ethical and religious principles, which has boosted demand for Sharia-compliant financial instruments like sukuk that avoid interest and promote asset-backed financing.- Supportive Regulatory Frameworks: Enhanced regulatory clarity and state-level initiatives encouraging Islamic finance adoption have improved the ease of issuing sukuk, thereby stimulating participation from both sovereign and private sector entities.
- Diversification Strategies of Issuers: Issuers are turning to sukuk to diversify their funding base and reach a broader audience, particularly in volatile markets where conventional bond instruments may face lower investor confidence.- Regulatory and Sharia Harmonization Gaps: Differences in interpretations of Sharia principles and varying regulatory practices across jurisdictions can complicate sukuk structuring, potentially limiting cross-border appeal and increasing transaction complexity for global issuers and investors.Sukuk Market SegmentationBy Sukuk Type- Murabahah Sukuk
- Salam Sukuk
- Istisna Sukuk
- Ijarah Sukuk
- Musharakah Sukuk
- Mudarabah Sukuk
- Hybrid Sukuk
- Other Sukuk TypesBy Currency- Turkish Lira
- Indonesian Rupiah
- Saudi Riyal
- Kuwaiti Dinar
- Malaysian Ringgit
- United States Dollar
- Other CurrenciesBy Issuer Type- Sovereign
- Corporate
- Financial Institutions
- Quasi-Sovereign
- Other Issuer TypesKey Companies Analysed- 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.Sukuk Market AnalyticsThe report employs rigorous tools, including Porter’s Five Forces, value chain mapping, and scenario-based modeling, to assess supply-demand dynamics. Cross-sector influences from parent, derived, and substitute markets are evaluated to identify risks and opportunities. Trade and pricing analytics provide an up-to-date view of international flows, including leading exporters, importers, and regional price trends.

Macroeconomic indicators, policy frameworks such as carbon pricing and energy security strategies, and evolving consumer behavior are considered in forecasting scenarios. Recent deal flows, partnerships, and technology innovations are incorporated to assess their impact on future market performance.

Sukuk Market Competitive IntelligenceThe competitive landscape is mapped through proprietary frameworks, profiling leading companies with details on business models, product portfolios, financial performance, and strategic initiatives. Key developments such as mergers & acquisitions, technology collaborations, investment inflows, and regional expansions are analyzed for their competitive impact. The report also identifies emerging players and innovative startups contributing to market disruption.

Regional insights highlight the most promising investment destinations, regulatory landscapes, and evolving partnerships across energy and industrial corridors.

Countries Covered- North America - Sukuk market data and outlook to 2034- United States
- Canada
- Mexico

- Europe - Sukuk market data and outlook to 2034- Germany
- United Kingdom
- France
- Italy
- Spain
- BeNeLux
- Russia
- Sweden

- Asia-Pacific - Sukuk market data and outlook to 2034- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Malaysia
- Vietnam

- Middle East and Africa - Sukuk market data and outlook to 2034- Saudi Arabia
- South Africa
- Iran
- UAE
- Egypt

- South and Central America - Sukuk market data and outlook to 2034- Brazil
- Argentina
- Chile
- PeruResearch MethodologyThis study combines primary inputs from industry experts across the Sukuk value chain with secondary data from associations, government publications, trade databases, and company disclosures. Proprietary modeling techniques, including data triangulation, statistical correlation, and scenario planning, are applied to deliver reliable market sizing and forecasting.

Key Questions Addressed- What is the current and forecast market size of the Sukuk industry at global, regional, and country levels?
- Which types, applications, and technologies present the highest growth potential?
- How are supply chains adapting to geopolitical and economic shocks?
- What role do policy frameworks, trade flows, and sustainability targets play in shaping demand?
- Who are the leading players, and how are their strategies evolving in the face of global uncertainty?
- Which regional “hotspots” and customer segments will outpace the market, and what go-to-market and partnership models best support entry and expansion?
- Where are the most investable opportunities - across technology roadmaps, sustainability-linked innovation, and M&A - and what is the best segment to invest over the next 3-5 years?Your Key Takeaways from the Sukuk Market Report- Global Sukuk market size and growth projections (CAGR), 2024-2034
- Impact of Russia-Ukraine, Israel-Palestine, and Hamas conflicts on Sukuk trade, costs, and supply chains
- Sukuk market size, share, and outlook across 5 regions and 27 countries, 2023-2034
- Sukuk market size, CAGR, and market share of key products, applications, and end-user verticals, 2023-2034
- Short- and long-term Sukuk market trends, drivers, restraints, and opportunities
- Porter’s Five Forces analysis, technological developments, and Sukuk supply chain analysis
- Sukuk trade analysis, Sukuk market price analysis, and Sukuk supply/demand dynamics
- Profiles of 5 leading companies - overview, key strategies, financials, and products
- Latest Sukuk market news and developmentsAdditional SupportWith the purchase of this report, you will receive:
- An updated PDF report and an MS Excel data workbook containing all market tables and figures for easy analysis.
- 7-day post-sale analyst support for clarifications and in-scope supplementary data, ensuring the deliverable aligns precisely with your requirements.
- Complimentary report update to incorporate the latest available data and the impact of recent market developments.

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