Global Sukuk Market Surpasses $221 Billion Amid Geopolitical Volatility

The global Islamic debt market has shown resilience in the face of geopolitical and macroeconomic volatility, according to a recent report by Fitch Ratings. The outstanding amount of Fitch-rated hard-currency sukuk exceeded $221 billion at the end of the first half of this year, a 13 percent increase from last year.

About 82 percent of Fitch-rated listed hard-currency sukuk were investment-grade at the end of June, while most issuers had Stable Outlooks and there were no defaults during the period. The report noted that the outlook for global sukuk issuance remains sensitive to geopolitical developments, but the listed HC sukuk universe is supported by strong credit quality and broad access to international listing venues.

The London Stock Exchange remained the leading venue for listed hard-currency sukuk at the end of the first half, followed by Euronext Dublin, the Frankfurt Stock Exchange, Boerse Stuttgart, and Nasdaq Dubai. The LSE's deep international investor base and established sukuk platform contributed to its leading position.