The Business Research Company’s 2026 market reports combine market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights to deliver research that is more actionable and strategically valuable.
Sukuk Market Size Review: What Shaped Past Growth And What Will Drive Future Expansion?
The sukuk market has seen considerable expansion in recent years. Forecasts suggest it will grow from $1295.08 billion in 2025 to $1537.09 billion in 2026, achieving a compound annual growth rate (CAGR) of 18.7%. This historic growth is largely due to the expansion of islamic banking systems, increasing demand for shariah-compliant investments, sovereign funding diversification needs, the evolution of regulatory frameworks for sukuk issuance, and the growth of middle east capital markets.
The sukuk market is projected to experience substantial expansion over the upcoming years. It is forecasted to reach $3001.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 18.2%. This anticipated growth during the forecast period is driven by several factors, including a heightened global interest in ethical investments, the increasing incorporation of sustainability-linked sukuk, the broadening of cross-border sukuk offerings, greater involvement from non-Islamic investors, and the enhanced digitization of Islamic capital markets. Key trends anticipated within this period involve the increasing issuance of green and social sukuk, the rising acceptance of digital sukuk platforms, the expansion of sovereign sukuk initiatives, the growing development of hybrid sukuk instruments, and improved clarity in shariah compliance.
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Understanding The Main Driver Of The Sukuk Market
The sukuk market’s expansion is anticipated to be fueled by swift urbanization across Middle Eastern nations. Urbanization signifies a country’s populace progressively migrating from rural to urban centers, resulting in urban populations increasing at a faster rate than rural ones. This demographic shift generates a need for infrastructure investment, which in turn stimulates economic development via reduced transaction expenses and enhanced productivity, among other means. For infrastructure projects, sukuk offers a widely adopted and highly efficient method for governments to secure funds both domestically and globally, adhering to sharia principles without incurring interest charges for national development. For example, data from June 2024, provided by the Baker Institute, a US-based non-profit governmental entity, shows that the Arab country population was around 465 million. The urban segment of this population in the region is projected to increase from 279 million to approximately 362 million by 2035. Such growth necessitates investments in education, infrastructure, and governance frameworks to cultivate an environment supportive of sustainable urban expansion. Consequently, the swift pace of urbanization in Middle Eastern countries is a primary catalyst for the sukuk market’s expansion.
Sukuk Market Segment Mapping For 2026 And Beyond
The sukuk market covered in this report is segmented –
1) By Sukuk Type: Murabahah Sukuk, Salam Sukuk, Istisna Sukuk, Ijarah Sukuk, Musharakah Sukuk, Mudarabah Sukuk, Hybrid Sukuk, Other Sukuk Types
2) By Currency: Turkish Lira, Indonesian Rupiah, Saudi Riyal, Kuwaiti Dinar, Malaysian Ringgit, United States Dollar, Other Currencies
3) By Issuer Type: Sovereign, Corporate, Financial Institutions, Quasi-Sovereign, Other Issuer Types
Subsegments:
1) By Murabahah Sukuk: Commodity Murabahah Sukuk, Asset-Backed Murabahah Sukuk
2) By Salam Sukuk: Agricultural Salam Sukuk, Industrial Salam Sukuk
3) By Istisna Sukuk: Construction Istisna Sukuk, Manufacturing Istisna Sukuk
4) By Ijarah Sukuk: Operating Ijarah Sukuk, Finance Ijarah Sukuk
5) By Musharakah Sukuk: Equity-Based Musharakah Sukuk, Project-Based Musharakah Sukuk
6) By Mudarabah Sukuk: Investment Mudarabah Sukuk, Short-Term Mudarabah Sukuk
7) By Hybrid Sukuk: Mixed Structure Sukuk, Multi-Tiered Sukuk
8) By Other Sukuk Types: Green Sukuk, Social Sukuk, Sukuk Al-Waqf
What Key Trend Is Expected To Shape The Sukuk Market Over The Forecast Period?
Key players in the sukuk market are concentrating on developing sustainable and novel financial instruments, like green and social sukuk, aiming to draw in a wider spectrum of ethical investors and back initiatives that align with environmental and social objectives. A Sharia-compliant investment fund functions as a financial instrument that abides by Islamic law, Sharia, forbidding interest and directing investments towards ethical enterprises, while steering clear of sectors such as alcohol, gambling, and other prohibited activities. For example, in September 2024, Al Baraka Capital, an Islamic financial services firm located in Bahrain Bay, introduced its inaugural Sharia-compliant investment fund, providing USD 4.11 million (EGP 200 million) in funding for 20 small industrial businesses in return for a share of their revenues. This fund employs Sukuk, which are Islamic financial certificates akin to bonds but fully compliant with Sharia law. Sukuk signify direct ownership in tangible assets or specific projects, enabling investors to generate returns without contravening Islamic prohibitions on interest (riba).
Sukuk Market Major Players And Industry Competition Overview
Major companies operating in the sukuk market are 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, Ajman Bank, Citi Islamic Investment Bank, Emirates NBD Bank PJSC, Standard Chartered plc, Qatar Islamic Bank, First Abu Dhabi Bank, Gulf International Bank, Islamic Development Bank, Kuwait International Bank, Mashreq Bank, Oman Arab Bank, Sharjah Islamic 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
Full Sukuk Market Report: Market Size, Trends, Segments And Key Players:
Sukuk Market Geographic Segmentation: Regions Covered In The Report
Saudi-Arabia was the largest region in the sukuk market in 2025. The regions covered in the sukuk market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
