“Malaysia drove global sukuk issuance growth in the first half of 2026 (1H 2026), with strong local currency issuance offsetting weaker Gulf Cooperation Council (GCC) countries issuance, according to S&P Global Ratings.”
“The ratings agency said in a report that global sukuk issuance reached US$129 billion in the first half of 2026, up from US$112.3 billion in the same period last year. It maintained its full-year forecast for issuance to rise modestly to between US$270 billion and US$280 billion.”
“S&P said sukuk issuance growth had been underpinned by local currency markets, notably in Malaysia, Qatar, Saudi Arabia and Türkiye, and expected these markets to remain the main growth drivers amid ongoing geopolitical tensions and a more restrictive interest rate environment, which would continue to weigh on foreign currency-denominated issuance.”
“It said the decline in foreign currency sukuk issuance could have been more pronounced without a US$7.3 billion increase in Malaysia’s foreign currency issuances, led by the International Islamic Liquidity Management Corporation (IILM).”
https://www.bernamabiz.com/news.php?id=2581010
See also: Understanding Sukuk – Sharia-Compliant Financial Instruments Explained
“Sukuk are Islamic financial certificates that mirror bonds in Western finance but adhere to Sharia principles. Unlike traditional interest-bearing bonds, sukuk involve selling certificates to investors, who then gain partial ownership in an asset purchased with those funds.”
“The issuer commits to buying back these certificates at a predetermined future date and at face value. This Sharia-compliant structure allows for debt financing without interest, linking investor returns directly to the performance of a tangible asset.”