GCC: Sukuk market set for ongoing global growth in 2025

Source: Middle East Insurance Review | May 2025

Continued growth of the global sukuk market can be expected, according to a commentary by Fitch Ratings.

Fitch noted that while USD sukuk issuance activity was vibrant in the first quarter, it usually experiences a lull in the summer before picking up in 3Q and 4Q.

However, according to Fitch, the sukuk market is also not immune from the surge in global volatilities, as most recently caused by the US government’s tariff rises on 2 April, which could affect market appetite. Nevertheless, it noted that the sukuk market’s credit profile is broadly stable.

“Expected growth in the sukuk market is driven by strong demand and diversification goals, but it is not insulated from global fluctuations, additional shariah-compliance requirements and challenges in emerging markets (EMs) and OIC countries, with the GCC and Southeast Asia remaining pivotal regions for sukuk issuance,” said Fitch Ratings global head of Islamic finance Bashar Al Natoor. M

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