GCC Countries Led Global Sukuk Issuance in 2025: S&P Global
Gulf Cooperation Council (GCC) countries played a major role in the global sukuk market in 2025, taking a 45% share of total global issuance, according to S&P Global. Saudi Arabia and the United Arab Emirates (UAE) were the main contributors.
S&P Global reported that global sukuk issuance rose by 12.7% in 2025, reaching $264.8 billion. This growth was supported by higher funding needs in key Islamic finance markets and easing global interest rates.
The ratings agency said strong performance came from Malaysia, Türkiye, and GCC countries such as Saudi Arabia, the UAE, and Bahrain. Lower oil prices increased borrowing needs for many oil-producing countries, pushing governments to issue more sukuk to raise funds.
Dr. Mohamed Damak, Global Head of Islamic Finance at S&P Global Ratings, said the GCC accounted for 45% of total global sukuk issuance in 2025 and 68% of all foreign currency sukuk. Saudi Arabia and the UAE made up a large part of this activity. He added that foreign currency sukuk issuance crossed $100 billion during the year.
Major Sukuk Issuers in 2025
Malaysia was the biggest contributor to sukuk growth in 2025. Its government and companies issued more sukuk in local currency, supported by a strong domestic market. At the same time, the International Islamic Liquidity Management (IILM) Corporation issued more sukuk in foreign currency, helping boost totals.
Saudi Arabia ranked second, issuing $72.5 billion worth of sukuk in 2025. Of this amount, $38 billion was raised in foreign currency, showing a 35% increase from 2024. Local currency issuance fell slightly, as both the government and private companies preferred to raise funds in foreign currencies. Saudi banks also issued more than $15 billion in sukuk, mainly in foreign currency, to help finance Vision 2030 development projects.
The UAE also strengthened the market by issuing $22.1 billion in sukuk during the year. Around $19 billion was raised in foreign currency. Banks and companies used sukuk to fund growing business activity. Dubai-based real estate developers were key players, raising money to buy land and develop new projects due to strong demand. However, local currency issuance declined because of lower federal government issuance.
Outlook for 2026
Looking ahead, S&P Global expects sukuk issuance to continue growing in 2026. Damak said lower interest rates, strong capital spending—especially in Saudi Arabia and the UAE—and lower oil prices will increase funding needs in some countries.
Global sukuk issuance is forecast to rise to between $270 billion and $280 billion in 2026. Foreign currency issuance is expected to range between $100 billion and $110 billion.
S&P Global also forecasts Brent crude oil prices to average $60 per barrel in 2026. This could increase financial pressure on oil-dependent countries, leading them to issue more sukuk to cover budget gaps.
The agency added that markets are expected to benefit from a possible 50 basis-point interest rate cut by the US Federal Reserve in the second half of 2026. However, risks remain, including possible geopolitical tensions or sudden changes in global market conditions.
Published: 14th January 2026
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