RIYADH: Global sukuk markets entered the new year with solid fundamentals, as the instrument is poised to remain a key funding tool in emerging markets after record issuance of about $300 billion in 2025, according to Fitch Ratings.
Global sukuk issuance rose 25 percent last year, supported by steady activity across Gulf Cooperation Council countries, as well as increased participation from banks, corporates, infrastructure and project finance issuers.
The ratings agency said issuance momentum is expected to continue this year, supported by funding diversification strategies, upcoming maturities and refinancing needs across sovereigns, financial institutions and corporates.
Sukuk are Shariah-compliant financial instruments that grant investors partial ownership in an issuer’s underlying assets and serve as an alternative to conventional bonds.
The report said sukuk issuance in 2025 was dominated by sovereign issuers, alongside rising activity from banks, corporates, infrastructure and project finance.
