The global Sukuk market exhibited strong growth during 2015-2020. Looking forward, the publisher expects the market to grow at a CAGR of 18.2% during 2021-2026. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end-use sectors. These insights are included in the report as a major market contributor.
A Sukuk is a financial certificate that is issued in Islamic countries for representing the share of ownership in a portfolio of existing or eligible assets. It provides the investor a proof of ownership in an underlying asset and various financial obligations while conducting trade and other commercial activities. Islamic law prohibits the lending of money with interest payments, thereby forbidding the use of conventional bonds for financial transactions. As an alternative, Sukuk is used, which does not represent any debt obligation as the issuer uses the proceeds from the certificate to purchase an asset, of which the investor also receives partial ownership.
Rapid urbanization in Middle Eastern countries is one of the key factors driving the growth of the market. Furthermore, the diversification of investment patterns in emerging countries and increasing cross-border transactions, are also providing a boost to the market growth. Also, various Islamic banking institutions are seeking strategic partnerships with foreign institutions to participate in trade with other countries. In line with this, the governments of these nations are establishing sophisticated Shariah-compliant financial institutions with innovative products and services, which is creating a positive outlook for the market. Furthermore, the widespread adoption of online transaction models has encouraged financial institutions to invest in analytics that can offer a better user experience and customized products to their customers. This, along with increasing investments by the governments of Islamic countries for infrastructural development and the digitization of financial services, is projected to drive the market further.
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Breakup by Sukuk Type:
- Murabahah Sukuk
- Salam Sukuk
- Istisna Sukuk
- Ijarah Sukuk
- Musharakah Sukuk
- Mudarabah Sukuk
- Hybrid Sukuk
- Others
Breakup by Currency:
- Turkish Lira
- Indonesian Rupiah
- Saudi Riyal
- Kuwaiti Dinar
- Malaysian Ringgit
- United States Dollar
- Others
Breakup by Issuer Type:
- Sovereign
- Corporate
- Financial Institutions
- Quasi-Sovereign
- Others
Breakup by Region:
- Gulf Cooperation Council (GCC)
- Southeast Asia
- The Middle East and Africa (Excluding GCC Countries)
- Others
Competitive Landscape:
The report has also analyzed the competitive landscape of the market with some of the key players being Abu Dhabi Islamic Bank PJSC, Al Baraka Banking Group, Al-Rajhi Bank, Banque Saudi Fransi, Dubai Islamic Bank, HSBC Holdings Plc, Kuwait Finance House, Malayan Banking Berhad, Qatar International Islamic Bank, RHB Bank Berhad, Samba Financial Group, etc.
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Key Questions Answered in This Report:
- How has the global Sukuk market performed so far and how will it perform in the coming years?
- What are the key regional markets?
- What has been the impact of COVID-19 on the global Sukuk market?
- What is the breakup of the market based on the Sukuk type?
- What is the breakup of the market based on the currency?
- What is the breakup of the market based on the issuer type?
- What are the various stages in the value chain of the industry?
- What are the key driving factors and challenges in the industry?
- What is the structure of the global Sukuk industry and who are the key players?
- What is the degree of competition in the industry?