The global sukuk market has carried its record-breaking momentum from 2025 into the new year, positioning itself as a vital and resilient source of funding for emerging markets worldwide, according to a new report by Fitch Ratings.
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Issuance reached an all-time high in 2025, exceeding $300 billion across all currencies—a remarkable 25% increase year-on-year. Sovereign issuers continued to dominate, while activity from banks, corporates, and project finance entities also saw significant growth. Fitch expects this issuance momentum to be sustained throughout 2026, with the market’s share of US dollar-denominated emerging market debt now standing at approximately 16%.
“The fundamentals of the sukuk market remain solid,” stated Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings. “We expect global sukuk issuance to sustain momentum in 2026, supported by continued growth in core markets and a rising share in emerging markets.”
The market’s strength is underscored by its high credit quality, with 82.5% of rated sukuk holding investment-grade status and 90.5% of issuers carrying a Stable Outlook. Notably, the market has recorded no defaults over the past four years. By the end of 2025, the total value of outstanding sukuk globally surpassed the $1 trillion milestone.
Core markets in the Gulf Cooperation Council (GCC), Malaysia, Indonesia, Türkiye, and Pakistan continue to drive the market, collectively representing a high concentration of activity. The report also highlights growing interest from new jurisdictions, with Algeria, Tunisia, Malta, and the Philippines introducing sukuk regulations in 2025.
