The global environmental, social and governance (ESG) sukuk market is set to surpass US$50 billion ($67.74 billion) outstanding in 2025, and remain one of the key dollar funding tools among the Islamic finance markets in Saudi Arabia, the UAE, Indonesia and Malaysia, says Fitch Ratings.
In 2024, global ESG sukuk — or “Shariah-compliant” bonds — expanded 23% y-o-y to US$45.2 billion outstanding, outpacing global ESG bonds, which were up 16%. ESG sukuk also outpaced global sukuk growth, which came in at 10%.
