Sukuk Market to Grow with a CAGR of 12.8% globally through 2030

The global sukuk market has experienced significant growth, driven by increasing demand for Islamic finance. Sukuk issuance has diversified, attracting diverse investors, and contributing to Islamic finance's global prominence.

According to TechSci Research report, “Sukuk Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global Sukuk Market was valued at USD 1.13 Billion in 2024 and is expected to reach USD 2.33 Billion by 2030 with a CAGR of 12.8% during the forecast period. The global Sukuk market is experiencing robust growth driven by a rising demand for Sharia-compliant financial instruments across both Islamic and non-Islamic regions. This demand is underpinned by increasing awareness among investors of ethical and socially responsible investment principles, which align well with the foundational values of Sukuk. Governments and financial institutions are leveraging Sukuk as a viable tool for infrastructure financing and public spending without violating Islamic laws that prohibit interest (riba). Moreover, the diversification benefits offered by Sukuk products are attracting a broader investor base, including conventional institutional investors seeking exposure to stable, asset-backed securities with relatively lower risk profiles. Technological integration in Islamic finance is further accelerating Sukuk issuance and trading, with blockchain and smart contract innovations enhancing transparency, traceability, and operational efficiency. In addition, regulatory frameworks in several key markets such as Malaysia, the UAE, and Indonesia have matured significantly, offering greater clarity and investor protection, which in turn bolsters confidence in Sukuk instruments. The market is also witnessing increasing cross-border activity, with issuances being structured to attract global investors and denominated in major international currencies to expand liquidity and accessibility.

However, the market continues to face certain challenges. A lack of standardization in Sukuk structuring across jurisdictions can create legal and compliance complexities for international investors. Additionally, secondary market liquidity remains limited compared to conventional bonds, which can hinder portfolio rebalancing and affect pricing efficiency. The market's dependence on economic stability in core issuing regions, particularly the GCC and Southeast Asia, makes it somewhat vulnerable to geopolitical and macroeconomic shocks. Despite these hurdles, the Sukuk market is expected to maintain its upward trajectory, supported by innovation, regulatory support, and the growing appetite for sustainable and Islamic finance products.

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Global Sukuk market is segmented into Sukuk Type, Currency,  Issuer Type, and region. 

Based on Sukuk type, Ijarah Sukuk has emerged as the fastest-growing segment, driven by its simplicity, wide acceptance, and tangible asset-backing structure that appeals to both issuers and investors. Ijarah, essentially a lease-based structure, mirrors the conventional bond mechanism more closely than other Sukuk types, making it more familiar and palatable for investors transitioning from traditional fixed-income markets to Islamic finance. Its standardized and transparent legal framework allows for easier implementation and global acceptance, particularly for sovereign and quasi-sovereign issuers who seek funding for infrastructure and public utility projects. The tangible asset backing in Ijarah Sukuk adds an element of security, which is crucial for risk-averse investors. Additionally, as large-scale infrastructure projects continue to expand in regions like the GCC, Southeast Asia, and increasingly in parts of Africa, Ijarah Sukuk is being viewed as a key financing mechanism. Governments and development banks often prefer Ijarah due to its compliance simplicity and its facilitation of long-term financing. With the market also evolving to incorporate technology and blockchain-based smart contracts, the administration of leased assets, cash flows, and maturity settlements within the Ijarah framework has become more streamlined. As a result, Ijarah Sukuk issuance is witnessing exponential growth, often representing the largest share of total annual Sukuk volumes, and is projected to sustain its momentum owing to strong infrastructure spending globally.

Based on currency, Indonesian Rupiah is currently the fastest-growing currency segment within the global Sukuk market, fueled by the Indonesian government's proactive efforts to develop a robust domestic Islamic capital market. Indonesia, home to the world’s largest Muslim population, has been strategically leveraging Sukuk to finance its national budget and infrastructure initiatives while fostering financial inclusion. The government’s consistent issuance of both retail and wholesale Sukuk in local currency has deepened market participation and investor confidence. Retail Sukuk, in particular, have been instrumental in engaging the broader public and promoting Islamic investment awareness among citizens. The appeal of Indonesian Rupiah Sukuk is further strengthened by local investor familiarity, reduced currency risk, and consistent returns in a relatively stable macroeconomic environment. 

Major companies operating in Global Sukuk market are:

• 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

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“One key trend in the global Sukuk market is the rise of ESG-linked and Green Sukuk, driven by the convergence of Islamic finance principles with sustainability objectives. As environmental and social responsibility becomes a priority for investors and issuers alike, Sukuk structures are increasingly being aligned with the UN Sustainable Development Goals (SDGs). Countries like Indonesia, Saudi Arabia, and the UAE are leading this trend by issuing green and sustainability-linked Sukuk to fund renewable energy projects, climate-resilient infrastructure, and social development programs. This shift not only attracts ESG-focused investors but also enhances the global appeal and relevance of Sukuk in the broader sustainable finance ecosystem.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Sukuk Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sukuk Type (Murabahah Sukuk, Salam Sukuk, Istisna Sukuk, Ijarah Sukuk, Musharakah Sukuk, Mudarabah Sukuk, Others), By Currency (Turkish Lira, Indonesian Rupiah, Saudi Riyal, Kuwaiti Dinar, Others), By Issuer Type (Sovereign, Corporate, Financial Institutions, Quasi-Sovereign, Others), By Region & Competition 2020-2030", has evaluated the future growth potential of global Sukuk market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Sukuk market.

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