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Sukuk Market Set To Climb From $1537.09 Billion In 2026 To $3001.8 Billion By 2030
The sukuk market has experienced considerable expansion in recent years. This market is projected to grow from $1295.08 billion in 2025 to $1537.09 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 18.7%. Historically, this growth can be ascribed to the broadening of Islamic banking systems, an escalating demand for shariah-compliant investments, the necessity for sovereign funding diversification, the establishment of regulatory frameworks for sukuk issuance, and the advancement of Middle East capital markets.
The sukuk market is projected to experience substantial expansion over the upcoming years. Its value is forecast to reach $3001.8 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 18.2%. This anticipated growth is driven by factors such as a surge in worldwide demand for ethical investment options, the increasing incorporation of sustainability-linked sukuk, the broadening of cross-border sukuk offerings, greater involvement from non-Islamic investors, and enhanced digitization within Islamic capital markets. Key trends for the projection period encompass a rise in the issuance of green and social sukuk, an increase in the use of digital sukuk platforms, the broadening of sovereign sukuk programs, the development of more hybrid sukuk instruments, and improved clarity in shariah compliance.
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Sukuk Market Demand Drivers: What’s Powering Industry Growth?
Rapid urbanization within Middle Eastern countries is expected to stimulate the growth of the sukuk market going forward. Urbanization signifies the gradual movement of a nation’s population from rural to urban areas, resulting in a faster increase of urban residents than rural ones. This demographic shift generates demand for infrastructure investment, subsequently fostering economic growth through various avenues, such as decreasing transaction costs and improving productivity. For infrastructure development, sukuk represents a popular and highly effective avenue for governments to raise capital locally and internationally via a sharia-compliant mechanism without incurring interest for the country’s development. For instance, in June 2024, according to Baker Institute, a US-based non-profit government organization, the population of Arab countries reached approximately 465 million. The urban population in the region is anticipated to grow from 279 million to about 362 million by 2035. This growth necessitates investment in education, infrastructure, and governance structures to cultivate conditions favorable for sustainable urban development. Therefore, the rapid urbanization in Middle Eastern countries is driving the expansion of the sukuk market.
Sukuk Market Segment Landscape: Which Areas Lead Development?
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
Sukuk Market Innovation Trends: What Developments Are Reshaping The Industry?
Leading companies in the sukuk market are concentrating on developing sustainable and innovative financial instruments, such as green and social sukuk, to attract a broader spectrum of ethical investors and support projects aligned with environmental and social objectives. A Sharia-compliant investment fund is a financial instrument that adheres to Islamic law, Sharia, which forbids interest and invests in ethical ventures while avoiding businesses related to alcohol, gambling, and other forbidden activities. For instance, in September 2024, Al Baraka Capital, a Bahrain Bay-based Islamic financial services company, launched the first Sharia-compliant investment fund with USD 4.11million(EGP 200 million) in financing for 20 small businesses in the industrial sector in exchange for a share of the revenues. The fund utilizes Sukuk, which are Islamic financial certificates similar to bonds but fully compliant with Sharia law. Sukuk represent ownership in tangible assets or projects, allowing investors to earn returns without violating Islamic prohibitions against interest (riba).
Sukuk Market Industry Leaders And Competitive Landscape
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
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Sukuk Market Regional Analysis And Top Geography
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.