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, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.14 Billion
CAGR (2026-2031)	12.81%
Fastest Growing Segment	Financial Institutions
Largest Market	Middle East & Africa
Market Size (2031)	USD 4.41 Billion

Market Overview

The Global Sukuk Market is projected to grow from USD 2.14 Billion in 2025 to USD 4.41 Billion by 2031 at a 12.81% CAGR. Sukuk are Sharia-compliant financial instruments representing ownership interests in underlying assets, meticulously structured to avoid interest-based transactions and excessive uncertainty prevalent in conventional bonds. The market's expansion is fundamentally supported by the increasing global demand for ethical and socially responsible investments, robust government initiatives promoting Islamic finance, and substantial infrastructure development across key Islamic economies. According to the Islamic Financial Services Board (IFSB), global sukuk issuances increased by 25.6% to reach USD 230.4 billion in 2024.

However, a notable impediment to sustained market expansion stems from evolving regulatory standards, particularly the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) proposed Shariah Standard 62. This standard aims to mandate a shift from asset-based to asset-backed structures, potentially introducing greater complexity in legal ownership transfer and increasing structuring costs across jurisdictions.

Key Market Drivers

Increasing demand for Sharia-compliant financial instruments profoundly influences the Global Sukuk Market by expanding the investor base seeking ethical and socially responsible investment opportunities. This growth is driven by both Muslim and non-Muslim investors attracted to the asset-backed nature and transparent risk-sharing principles inherent in sukuk structures. According to Standard Chartered's report on Islamic banking, May 2025, global Islamic finance assets reached $5 trillion in 2024, marking a 12% rise from 2023. This robust expansion of the broader Islamic finance industry directly translates into greater capital flows towards Sharia-compliant investment vehicles, including sukuk, as investors look for instruments that align with their values while offering competitive returns.

Growing infrastructure and development project financing needs represent another critical driver for the sukuk market, particularly in core Islamic economies. Governments and corporations in these regions increasingly utilize sukuk to fund large-scale projects, ranging from transportation networks to energy initiatives, due to their suitability for long-term financing and asset-based characteristics. According to Arab News, February 2026, international sukuk issuance for sovereign and supranational entities reached nearly $28 billion in 2025, representing a rise from $20.5 billion in 2024, with these instruments increasingly utilized for infrastructure development. This reliance on sukuk for national development strategies is further reinforced by the sector's overall market scale. According to Bloomberg, in 2025, the global sukuk market surpassed USD 1 trillion in outstanding debt. This sustained need for capital to support economic diversification and modernization projects ensures a continuous pipeline for sukuk issuances.

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Key Market Challenges

Evolving regulatory standards represent a notable impediment to the sustained expansion of the global Sukuk market. Specifically, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) proposed Shariah Standard 62 aims to mandate a transition from asset-based to asset-backed structures. This shift introduces greater complexity in legal ownership transfer and elevates structuring costs across numerous jurisdictions.

The increased complexity and higher costs directly hamper market growth by making Sukuk issuances more challenging and expensive for potential issuers. The requirement for true legal ownership of underlying assets, as opposed to beneficial interests, necessitates more intricate legal and operational frameworks. This can prolong transaction timelines and raise the overall cost of bringing new Sukuk to market, consequently limiting the volume of new issuances. For instance, according to the International Islamic Liquidity Management Corporation, total Sukuk issuances reached USD 22.9 billion in 2025 across 69 series, indicating ongoing activity amidst these structural considerations. This highlights that while the market remains active, the evolving standards demand significant adaptation, potentially tempering broader growth momentum as participants contend with new structural paradigms.

Key Market Trends

The emphasis on sustainable and green sukuk development has emerged as a significant trend, aligning Islamic finance principles with global environmental and social governance objectives. This development addresses a growing investor appetite for Sharia-compliant instruments that finance eco-friendly or socially responsible projects, thereby diversifying the sukuk investor base beyond traditional Islamic finance mandates. Such instruments are crucial for funding initiatives like renewable energy and sustainable infrastructure. According to the Islamic Development Bank, October 2025, in its news release, the institution successfully raised EUR 500 million through its Green benchmark Sukuk, signaling strong demand for these specialized offerings.

Another transformative trend is the increasing digitalization of sukuk issuance and trading, leveraging technology to enhance market efficiency, transparency, and accessibility. This trend streamlines often complex and manual processes, from origination to settlement, by utilizing platforms based on distributed ledger technology. Digitalization can also broaden investor participation by enabling fractional ownership and reducing minimum investment thresholds. For example, according to The National Law Review, April 2026, Qatar National Bank issued USD 500 million in digitally native notes in November 2025, representing a notable stride in digital bond issuance within the Middle East and Africa.

Segmental Insights

In the Global Sukuk Market, the Financial Institutions segment is emerging as a rapidly growing component, driven by essential strategic and regulatory considerations. This acceleration is primarily attributable to financial institutions utilizing sukuk for robust liquidity management and diversification of their funding sources in compliance with Sharia principles. Furthermore, these entities issue sukuk to strengthen their capital bases, effectively meeting international capital adequacy requirements, such as those derived from Basel frameworks. Regulatory bodies, including the Central Bank of the UAE, have supported this growth through favorable legal frameworks, encouraging institutions to leverage sukuk for their financing needs and to support capitalization. This convergence of funding diversification, capital optimization, and supportive regulatory environments underpins the segment's significant expansion.

Regional Insights

The Middle East & Africa region, particularly the Gulf Cooperation Council (GCC) countries, holds a significant and leading position within the global Sukuk market, serving as a critical epicenter for Shariah-compliant financing. This prominence is driven by robust governmental support and ambitious national development agendas, such as Saudi Vision 2030 and UAE Vision 2021, which necessitate substantial capital for diversification and extensive infrastructure projects. Regulatory bodies like the Saudi Central Bank (SAMA) and the Central Bank of the UAE (CBUAE) establish comprehensive Shariah governance frameworks, ensuring strict adherence to Islamic finance principles and fostering investor confidence. Such a supportive ecosystem, coupled with high regional demand for ethical investments, positions the Middle East & Africa as a key driver of global Sukuk market activity.

Recent Developments

• In February 2026, Bloomberg launched the Bloomberg Shariah Sukuk Indices, a new family of fixed income benchmarks. These indices were designed to provide comprehensive tracking of the global Sukuk market, which exceeded $1 trillion in outstanding debt by the end of 2025. The introduction of these benchmarks addressed an institutional need for transparent and rules-based tools in the rapidly expanding Islamic bond market, covering various currencies and segments, including investment grade, high yield, and emerging markets, thereby enhancing market infrastructure.
• In July 2025, National Bank of Ras Al Khaimah (P.S.C.) collaborated with National Bonds to integrate with the Al Manassah fintech platform. This partnership aims to streamline the issuance, subscription, and redemption processes for Sukuk, or Islamic bonds. The companies sought to enhance market accessibility and operational efficiencies, enabling seamless, automated Sukuk transactions for both retail and corporate clients within the Global Sukuk Market. This initiative represents a strategic move towards digitizing Islamic financial instruments.
• In April 2025, Abu Dhabi Islamic Bank (ADIB) introduced its Smart Sukuk platform, a new product designed to broaden investor access to the Sukuk market. This innovative platform allows retail investors to participate in Sukuk offerings with a minimum investment of just USD 1,000, a significant reduction from the traditional private placement thresholds. The fully digital and Shariah-compliant platform facilitates the entire investment process, from onboarding and suitability checks to investment selection and automated profit distributions, reflecting an evolution in Sukuk product accessibility.
• In 2025, the market for sustainable Sukuk experienced substantial growth, with issuances in the Middle East reaching a new record of $11.4 billion. This highlights a significant trend within the Global Sukuk Market towards innovative financial instruments that fund projects with environmental or social benefits, while adhering to Shariah principles. Forecasts projected global outstanding ESG Sukuk to surpass $60 billion by the end of 2026, driven by an expanding role in financing sustainability initiatives and attracting a diverse investor base.

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

By Sukuk Type	By Currency	By Issuer Type	By Region
Murabahah Sukuk Salam Sukuk Istisna Sukuk Ijarah Sukuk Musharakah Sukuk Mudarabah Sukuk Others	Turkish Lira Indonesian Rupiah Saudi Riyal Kuwaiti Dinar Others	Sovereign Corporate Financial Institutions Quasi-Sovereign Others	North America Europe Asia Pacific South America Middle East & Africa

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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE