Fitch: Türkiye to remain major EM debt, sukuk issuer
Türkiye is likely to remain a major global sukuk and emerging-market debt issuer in 2026, driven by high external financing needs, upcoming maturities, wider fiscal deficits and efforts to diversify funding sources, Fitch Ratings said in a new report.
Fitch said sovereign issuance will continue to dominate the sukuk market, while banks and corporates are expected to access capital markets opportunistically. However, investor sentiment and volatility linked to the war in Iran could limit issuance activity, it said, adding that Türkiye’s hosting of COP31 and the new National Green Finance Strategy could support ESG debt growth.
“Foreign investor demand for recent Turkish sovereign U.S. dollar sukuk and bonds remained intact, but foreign participation in the local-currency market is falling. Most Fitch-rated Turkish sukuk are rated ‘BB-’ with no defaults,” said Bashar Al Natoor, Fitch’s Global Head of Islamic Finance.
Türkiye’s debt capital market continued to expand despite war-related volatility, with outstanding debt exceeding $516 billion at the end of the first half of 2026, up 9 percent year-on-year, according to the report.
