Sukuk Market Outlook, Growth Opportunities, and Forecast 2026-2034

Market Overview:

The sukuk market is experiencing rapid growth, driven by high financing needs and fiscal pressures, supportive economic environments and infrastructure projects, and global monetary policy easing and rate adjustments. According to IMARC Group's latest research publication, "Sukuk Market Size, Share, Trends and Forecast by Sukuk Type, Currency, Issuer Type, and Region, 2026-2034", The global sukuk market size was valued at USD 1,376.7 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 4,190.9 Billion by 2034, exhibiting a CAGR of 12.51% from 2026-2034.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

• Market Dynamics
• Market Trends And Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Sukuk Market

• High Financing Needs and Fiscal Pressures

The global Sukuk market size 2023 established a strong foundation for continued expansion, driven by rising financing needs across core Islamic finance jurisdictions. In 2026, lower average oil prices, projected at approximately $60 per barrel for Brent, have created revenue-side fiscal pressures for oil-dependent nations. This shift necessitates increased borrowing to sustain national budgets and public spending. Saudi Arabia and the United Arab Emirates remain the primary engines of this activity, utilizing Sukuk to fund massive capital expenditure programs aligned with their long-term economic transformation strategies. For instance, the market saw a strong start in 2026 with the International Islamic Liquidity Management Corporation successfully reissuing $1.3 billion in short-term Sukuk to meet high demand for Shari’ah-compliant instruments. This trend is bolstered by cooling global inflation and anticipated monetary easing, which creates more favorable pricing conditions for issuers looking to tap into deep pools of Islamic liquidity to bridge fiscal gaps.

• Supportive Economic Environments and Infrastructure Projects

Strong economic performance in the Gulf Cooperation Council and Southeast Asian regions continues to drive the issuance of Sukuk to fund large-scale infrastructure and urbanization. Rapid urban growth, particularly in the Middle East where a significant majority of the population is migrating toward metropolitan hubs, requires substantial investment in transportation, utilities, and real estate. Governments are increasingly turning to Sukuk because their asset-backed nature aligns perfectly with the tangible requirements of infrastructure development. In early 2026, the UAE demonstrated this resilience with substantial foreign currency issuances reaching $19 billion, as banks and corporations sought to finance expanding industrial activities. Furthermore, Türkiye has seen a notable rise in local-currency Sukuk, with major corporate entities like Turk Telecom entering the market with $600 million issuances. These activities reflect a robust appetite for Shari’ah-compliant debt as a primary tool for fueling national development and private sector expansion in stable economic corridors.

• Global Monetary Policy Easing and Rate Adjustments

The stabilization of global financial conditions and the transition toward lower interest rates have significantly lowered the cost of borrowing for Sukuk issuers, making these instruments more competitive. As the Federal Reserve and other major central banks signal a shift toward monetary easing in 2026, the resulting decline in profit rates has improved financing conditions globally. This environment encourages sovereign and corporate issuers to refinance existing debt or launch new series of Sukuk to capture lower yields. The global Sukuk outstanding has now surpassed $1.1 trillion, reflecting a high level of confidence among international investors who view these instruments as stable, investment-grade assets. Statistics indicate that over 80% of current Sukuk issuers maintain investment-grade ratings, providing a secure harbor for capital during periods of broader market volatility. This influx of global capital is further supported by standardized regulatory frameworks that simplify cross-border transactions and attract non-Islamic institutional investors seeking portfolio diversification.

Key Trends in the Sukuk Market

• Surge in Sustainable and Green Sukuk

A defining trend in the current market is the rapid acceleration of ESG-linked and green Sukuk, driven by global climate commitments and regional energy transitions. In 2026, sustainable bond and Sukuk issuance in the Middle East is on track to reach $25 billion, with Saudi Arabia and the UAE leading the charge. A primary real-world application of this trend is the financing of massive renewable energy projects, such as the world’s largest utility-scale green hydrogen plant in Neom, which utilizes wind and solar energy. Investors are increasingly prioritizing "blue Sukuk" as well, which fund water conservation and offshore wind projects. For example, Emirates NBD recently raised $1 billion through a dual-tranche issuance that included $300 million specifically dedicated to blue projects. This shift reflects a broader alignment between Islamic ethical principles and modern sustainability goals, making green Sukuk a preferred vehicle for financing the global transition toward a low-carbon economy.

• Digitalization and Retail Market Accessibility

The democratization of the Sukuk market through digital platforms and retail-focused initiatives is transforming how individual investors interact with Islamic debt. Historically dominated by institutional players, the market is now opening to the public through "fractional Sukuk" and digital apps that lower the barrier to entry. In the UAE, the Ministry of Finance’s Retail Sukuk initiative has shown remarkable results in 2026, with new investors accounting for 66% of the total trading value, representing approximately AED 7.16 million in fresh capital. These digital offerings allow individuals to invest smaller amounts in secure, government-backed instruments, fostering a more inclusive investment culture. Banks like Emirates NBD and Emirates Islamic have become key distribution partners, using mobile banking interfaces to streamline the subscription process. This trend toward "Sukuk for all" is not only diversifying the investor base but also providing governments with a stable, domestic source of funding that is less susceptible to international market shocks.

• Tokenization and Blockchain Integration

The integration of blockchain technology and the tokenization of real-world assets are emerging as transformative forces within the 2026 Sukuk landscape. By converting Sukuk into digital tokens, issuers can reduce administrative costs, automate Shari’ah compliance through smart contracts, and enhance secondary market liquidity. This trend is particularly relevant for the real estate and trade finance sectors, where clear ownership records are essential. Saudi Arabia has already announced national infrastructure to support regulated real estate tokenization, allowing for the digital transfer of ownership and profit distribution. The global Islamic fintech transaction volume is currently valued at nearly $341 billion, highlighting the scale of digital Shari’ah-compliant finance. Tokenization finds its footing quickly in this sector because Islamic finance already demands identifiable assets and transparent cash flows—features that are native to blockchain architecture. This technological shift is moving from theoretical discussion into practical, regulated rulebooks across the Gulf and Southeast Asia.

Leading Companies Operating in the Global Sukuk Industry:

• Abu Dhabi Islamic Bank PJSC
• Al Baraka Group B.S.C.
• Al Rajhi Bank
• Banque Saudi Fransi
• Dubai Islamic Bank Public Joint Stock Company
• Kuwait Finance House
• Malayan Banking Berhad
• Qatar International Islamic Bank
• RHB Bank Berhad
• The Saudi National Bank

Sukuk Market Report Segmentation:

By Sukuk Type:

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

Murabahah Sukuk, holding 45.6% market share in 2025, is favored for its transparent structure based on cost-plus profit sales, appealing to a diverse range of investors and issuers, and aligning with Islamic finance principles to support various sectors, thereby enhancing its market dominance.

By Currency:

• Turkish Lira
• Indonesian Rupiah
• Saudi Riyal
• Kuwaiti Dinar
• Malaysian Ringgit
• United States Dollar
• Others

The Malaysian Ringgit accounts for 50.6% of the market share, bolstered by Malaysia's strong Islamic finance framework and government support for Sukuk issuance, which attracts both domestic and international investors seeking Sharia-compliant investments.

By Issuer Type:

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

Sovereign issuers hold 49.9% of the market share, characterized by national government agencies or state-owned entities that issue Sukuk to finance public projects, offering low-risk investments that attract a wide range of investors and serve as market benchmarks.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

South East Asia leads the market with 57.3% share, supported by a robust Islamic finance ecosystem and government-funded infrastructure projects, alongside rising interest in sustainable investments, fostering growth and cross-border collaborations in the region.

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