Blogs
The latest report by IMARC Group, titled “Sukuk Market Report by Sukuk Type (Murabahah Sukuk, Salam Sukuk, Istisna Sukuk, Ijarah Sukuk, Musharakah Sukuk, Mudarabah Sukuk, Hybrid Sukuk, and Others), Currency (Turkish Lira, Indonesian Rupiah, Saudi Riyal, Kuwaiti Dinar, Malaysian Ringgit, United States Dollar, and Others), Issuer Type (Sovereign, Corporate, Financial Institutions, Quasi-Sovereign, and Others), and Region 2024-2032”, offers a comprehensive analysis of the industry, which comprises insights on the sukuk market outlook.
Sukuk Market Analysis:
The global sukuk market size reached US$ 1,063.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3,619.3 Billion by 2032, exhibiting a growth rate (CAGR) of 14.1% during 2024-2032.
Factors Affecting the Growth of the Global Sukuk Industry:
- Rising Adoption of Sharia-Compliant Investments:
The increasing demand for Sharia-compliant investment opportunities is a primary driver of the sukuk market. As Islamic finance principles gain traction globally, investors and financial institutions seek instruments that align with these principles, which prohibit interest (riba) and promote ethical investing. Sukuk, or Islamic bonds, offer a viable alternative, providing a way to invest in fixed-income securities while adhering to Sharia law. This demand is fueled by the growing Muslim population and their desire for financial products that comply with religious beliefs. Additionally, non-Muslim investors are also exploring sukuk as a way to diversify their portfolios and tap into emerging markets where Islamic finance is prevalent. This expanding interest supports the growth and development of the sukuk market, encouraging more issuers to enter the space and broaden the range of available products.
- Diversification and Risk Management:
Diversification and risk management are key factors driving the sukuk market. Investors and financial institutions are increasingly using sukuk to diversify their investment portfolios and manage risk, particularly in volatile financial environments. Sukuk provide a way to achieve stable returns while complying with Sharia principles, offering an alternative to conventional bonds. The structured nature of sukuk, with its underlying assets and profit-sharing arrangements, can offer lower risk compared to traditional debt instruments. This appeal is particularly strong among risk-averse investors and those looking to hedge against market fluctuations.
- Increasing Sovereign and Corporate Issuances:
The rise in sovereign and corporate issuances is significantly driving the sukuk market. Governments and corporations in various countries, particularly in the Middle East and Southeast Asia, are turning to sukuk as a means of raising capital for development projects and corporate financing. Sovereign sukuk are often used to fund infrastructure projects, social programs, and economic development initiatives, while corporate sukuk help businesses manage their funding needs and expand operations. This trend is supported by favorable regulatory environments and incentives provided by governments to promote Islamic finance. Additionally, the increasing acceptance and integration of sukuk into global financial markets are attracting a wider range of issuers and investors, further bolstering market growth and diversity.
For an in-depth analysis, you can request a sample copy of the report: https://www.imarcgroup.com/sukuk-market/requestsample
Competitive Landscape:
The competitive landscape of the market has been studied in the report with detailed profiles of the key players operating in the market.
- 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
- Samba Financial Group
Sukuk Market Report Segmentation:
By Type:
- Murabahah Sukuk
- Salam Sukuk
- Istisna Sukuk
- Ijarah Sukuk
- Musharakah Sukuk
- Mudarabah Sukuk
- Hybrid Sukuk
- Others
Murabahah sukuk accounts for the largest market share due to its popularity among investors seeking Sharia-compliant fixed-income products.
By Currency:
- Turkish Lira
- Indonesian Rupiah
- Saudi Riyal
- Kuwaiti Dinar
- Malaysian Ringgit
- United States Dollar
- Others
Malaysian ringgit dominates the market due to Malaysia's robust Islamic finance ecosystem and regulatory framework supporting sukuk issuance.
By Issuer Type:
- Sovereign
- Corporate
- Financial Institutions
- Quasi-Sovereign
- Others
Sovereign entities represent the largest segment due to governments' preference for sukuk to fund infrastructure projects and budget deficits.
Regional Insight:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
South East Asia’s dominance in the sukuk market is attributed to the region's strong Islamic finance infrastructure and growing demand for Sharia-compliant investment instruments.
Global Sukuk Market Trends:
The sukuk market is expanding beyond its traditional strongholds in the Middle East and Southeast Asia. Increasingly, countries outside these regions are issuing sukuk to tap into the growing demand for Sharia-compliant investments and diversify their funding sources. Besides, innovation in sukuk structures and products is a significant trend driving the market. Traditional sukuk structures are evolving to meet the needs of diverse investors and issuers, with new formats and mechanisms being introduced.
Ask Analyst for Customization: https://www.imarcgroup.com/request?type=report&id=2263&flag=C
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high-technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company's expertise.
Our offerings include comprehensive market intelligence in the form of research reports, production cost reports, feasibility studies, and consulting services. Our team, which includes experienced researchers and analysts from various industries, is dedicated to providing high-quality data and insights to our clientele, ranging from small and medium businesses to Fortune 1000 corporations.
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: +1-631-791-1145
Posted in: Business
Topics:
sukuk market
Be the first person to like this.