Global Sukuk Outstanding Crosses USD 1 Trillion as Issuance Reaches USD 262.9 Billion
Global Sukuk outstanding has surpassed the USD 1 trillion mark for the first time, according to the 15th edition of the International Islamic Financial Market (IIFM) Annual Sukuk Report.
The report, which contains data for 2025, puts combined global Sukuk outstanding at USD 1.015 trillion, comprising USD 280.58 billion in international Sukuk and USD 734.93 billion in domestic Sukuk.
Global Sukuk Issuance Reaches USD 262.9 Billion
The report also recorded significant growth in Sukuk issuance during 2025.
Total global Sukuk issuance, combining international and domestic markets, reached USD 262.9 billion, representing a 28.2% year-on-year increase.
International Sukuk issuance increased by 50.8% to USD 98.9 billion, while domestic Sukuk issuance rose by 17.5% to USD 163.9 billion.
Sovereign issuers remained the largest contributor to global Sukuk issuance, accounting for USD 137.5 billion, or 52.3% of the global total. Quasi-sovereign issuance increased by 66.5% to USD 52.3 billion, while corporate Sukuk issuance reached USD 33.5 billion, an increase of 39.4%. Financial institution issuance stood at USD 39.6 billion, up 28.8% from the previous year.
Sukuk Al-Ijarah Leads Domestic Issuance
The report also identified a change in the composition of the domestic Sukuk market.
Sukuk Al-Ijarah became the leading structure in the domestic market in 2025, accounting for 24.28%, equivalent to USD 39.8 billion. It overtook Sukuk Al-Murabahah, which had led the domestic market in previous years.
In the short-term liquidity segment, the International Islamic Liquidity Management Corporation (IILM) issued USD 22.9 billion across 69 issuances, representing 32.1% of global short-term Sukuk volume.
Malaysia Remains the Largest Cumulative Sukuk Issuer
For the cumulative period from 2001 to 2025, Malaysia remained the largest market for global Sukuk issuance, with USD 1,080.77 billion, representing 43.69% of cumulative issuance.
Saudi Arabia ranked second with USD 379.16 billion (15.33%), followed by Indonesia with USD 237.93 billion (9.62%).
Industry Outlook
The launch of the 15th edition of the IIFM Sukuk Report was accompanied by a virtual webinar bringing together industry experts to discuss the future development of the Sukuk market.
According to IIFM, discussions included the structural differences between asset-backed and asset-based Sukuk, related legal and Shariah considerations, and the need for greater standardisation of documentation.
IIFM also highlighted digital innovation, including the potential role of tokenisation, as an area of future development for the Sukuk market.
Industry Impact
The USD 1.015 trillion level of global Sukuk outstanding marks a significant milestone for the Islamic capital market. The accompanying growth in issuance across international, domestic, sovereign, quasi-sovereign, corporate and financial institution segments also indicates the breadth of Sukuk activity captured in IIFM’s latest data.
The report’s findings provide a current reference point for understanding the scale and development of the global Sukuk market, while the increased issuance of different issuer types and the rise of Sukuk Al-Ijarah in the domestic market highlight developments in the composition of the market.
Source: International Islamic Financial Market (IIFM), IIFM Sukuk Report 2026 (15th Edition).
