Global Sukuk Market to Reach $1 Trillion by 2025

The global Sukuk market is poised for significant growth, with projections indicating it will surpass $1 trillion by 2025. This surge is driven by increasing demand for Sharia-compliant financial instruments and growing investor confidence in Islamic finance. Governments in Muslim-majority countries are issuing more sovereign Sukuk to fund infrastructure projects, further fueling the market's expansion.

Analysts note that the stability and ethical nature of Sukuk are attracting a diverse range of investors, including those outside the traditional Islamic finance sphere. The asset-backed nature of Sukuk provides a lower risk profile compared to conventional bonds, making them an attractive option in volatile market conditions.