Manama, Kingdom of Bahrain – The International Islamic Financial Market (IIFM), a leading infrastructure development institution of the Islamic finance industry, today, announced the publication of the fourteenth (14th) edition of its annual Sukuk Report, featuring comprehensive 2024 data.

A virtual launch event was held to mark the publication of the report, attracting 240 registered participants worldwide. International experts from all regions discussed trends in Sukuk structures, particularly hybrid and intangible asset Sukuk and the prospect of standardizing its documentation to drive the Sukuk sector's growth and innovation.

The research report provides comprehensive and useful information on the global Sukuk issuances, market developments and prospects, structure trends, issuer types, case studies, articles, and country specific information for IIFM founding member countries and major Sukuk-issuing jurisdictions.

The report finds that the total global Sukuk issuances in the year 2024 reached US$ 205 billion. Whereby the International Sukuk issuance recorded its highest level since inception, rising to US$ 65.6 billion, an increase of US$ 12.9 billion (24.5%) from US$ 52.7 billion in 2023. This strong performance reflects improving global liquidity conditions and a decline in funding costs, which supported increased activity in the international market.

In contrast, short-term Sukuk issuances declined to USD 59.1 billion, down from US$ 72.7 billion in 2023, driven by reduced domestic market activity and a broader shift away from short-term funding instruments.

The report highlights that global outstanding Sukuk reached US$ 902.82 billion in 2024. Most of these issuances originate from well-established markets such as Kingdom of Bahrain, Malaysia, Kingdom of Saudi Arabia, the United Arab Emirates, and Indonesia. Emerging markets including Türkiye, Pakistan, Qatar, Oman and regions across Africa are expected to gradually expand their share in the Sukuk landscape in the coming years.

“Global Sukuk issuances reached US$ 205 billion in 2024, reflecting the continued resilience and steady growth of Islamic capital markets,” said Mr. Affendi Rashdi, Director-General of the Labuan Financial Services Authority (Labuan FSA - Malaysia) and Vice Chairman of IIFM. “Digitalization represents a major force reshaping Sukuk markets. Around the world, including in Malaysia, markets are exploring blockchain-based issuance, tokenized investment instruments, and smart Sukuk structures. This is not a passing trend but an industry imperative. The Labuan International Business and Financial Centre (Labuan IBFC) has taken early leadership in this space through the establishment of the Islamic Digital Asset Centre (IDAC) in 2022. Notably, the world’s first tokenized institutional Sukuk - the tokenization of the International Islamic Liquidity Management Corporation (IILM) Sukuk - was executed in Labuan IBFC. This proves that tokenization is no longer theoretical, it is becoming the new normal.”

The IIFM's Acting CEO, Dr. Ahmed Rufai, affirmed that hybrid and intangible asset Sukuk are crucial for driving innovation and financial inclusion in the Islamic finance industry. He emphasized their ability to provide Shari’ah-compliant financing solutions that accommodate the evolving global economy.

Dr. Rufai stressed the paramount importance of standardizing the documentation for these Sukuk as “the cornerstone of a more mature and stable future for the Islamic financial industry.” He outlined several direct and indirect benefits of this standardization: enhancing transparency and certainty, increasing liquidity in the secondary market, reducing issuance and operating costs, facilitating cross-border financing transactions, supporting the issuance of intangible asset Sukuk and attracting small and medium-sized enterprises (SMEs). Dr. Rufai concluded by thanking the IIFM Board of Directors for the continuous support, the IIFM research team, all contributors of Sukuk case studies, articles, and country focus reports from member countries' regulators and extended his profound gratitude to the report's sponsors: DDCAP Group, Kuwait Finance House, Bank ABC Islamic, and Labuan FSA.

The IIFM Sukuk Report (14th Edition) is freely downloadable from: www.iifm.net

ABOUT INTERNATIONAL ISLAMIC FINANCIAL MARKET (IIFM)

IIFM is a global standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardization of Shari’ah-compliant financial contracts and product templates.

IIFM is based in Bahrain and was established under Royal Decree No (23) Year 2002 of the Kingdom of Bahrain as a neutral and non-profit international Islamic infrastructure institution, created by the collective efforts of the Central Bank of Bahrain (CBB), Islamic Development Bank, Bank Indonesia, Bank Negara Malaysia (represented by Labuan Financial Services Authority), Central Bank of Sudan and Brunei Darussalam Central Bank.

Besides the Founding and Permanent Members, IIFM Board of Directors consist of Islamic and international banks namely Kuwait Finance House, Dubai Islamic Bank, Saudi National Bank, Bank ABC Islamic, Standard Chartered Bank Saadiq, National Bank of Kuwait, GFH Financial Group and BNP Paribas.

IIFM is also supported by regulatory bodies and several international and regional financial institutions and other market players active in the Islamic finance industry.

Information on IIFM and its activities is available on www.iifm.net 

Media Contact:
Mr. Tareq Fouad, Officer, IIFM
Office: +973 17 500161; e-mail: tareq.fouad@iifm.net