With the growing demand for ethical and Shariah-compliant financial instruments as alternatives to conventional finance, Sukuk has emerged as a critical tool for raising capital in line with Islamic legal principles. These instruments appeal not only to Shariah-conscious investors but also to a broader pool of ethical investors seeking asset-backed, socially responsible options. Sukuk, the plural of ‘Sak’, are widely referred to today as “Islamic bonds”.
They are ‘certificates of equal value representing undivided shares in the ownership of tangible assets, usufructs and services or (in the ownership of) the assets of particular projects or special investment activity’.1
Over the past decade, Sukuk markets have recorded global exponential growth, driven by both sovereign and corporate issuances in the Middle East, Southeast Asia, and increasingly, parts of Africa. In 2024 alone, sukuk issuances totalled nearly $200 billion globally’,2 with expectations for continued expansion in 2025 and beyond.
