Fitch-rated sukuk surpassed $210 billion by the end of the first half of 2025, rising 16 percent annually. About 39 percent are in the ‘A’ rating category, followed by ‘BBB’ at 25 percent and ‘BB’ at 13 percent.
“Most Fitch-rated sukuk rank senior unsecured and hold international long-term ratings with about 87 percent of sukuk issuers having Stable Outlook,” said Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
In its latest report, Fitch Ratings also revealed that the credit profile of the global sukuk market remains robust, with around 80 percent of Fitch-rated sukuk at investment grade and no defaults as of end-H1 2025.
Fitch rates more than 255 sukuk and 95 programs, representing more than 70 percent of the outstanding global U.S. dollar sukuk market.
“Over 90 percent of rated sukuk are U.S. dollar-denominated and are largely characterised by bullet and fixed-rate structures. Medium-term sukuk with tenors between three to 10 years dominate, comprising over 81 percent of all rated sukuk,” Al Natoor added.
Fitch also revealed that ESG sukuk are gaining traction, representing 12 percent of all Fitch-rated sukuk outstanding or $25 billion. Most of these sukuk are dual listed on leading exchanges, such as the London Stock Exchange, Nasdaq Dubai and Euronext, reflecting the international investor base. Most rated sukuk mature by 2030.
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Regional and sector diversity has also increased, but the Middle East still accounts for 69.9 percent of Fitch-rated sukuk, followed by Asia at 21.6 percent and Europe at 7.3 percent.
Sovereign and supranational issuers represent over half of the market, but diversity rose with sizeable shares from financial institutions, corporates, international public finance, infrastructure and project finance and structured finance (ABS).
About 11 percent of all rated sukuk are long-term with tenors above 10 years, while just 7 percent have tenors shorter than three years. In addition, about 6.2 percent are denominated in Malaysian ringgit.
