The ESG sukuk market is expected to cross 7.5% of global outstanding sukuk in the coming years with growth likely to be supported by issuers’ funding diversification plans, to satisfy international ESG investors’ mandates, and by government sustainability initiatives, according to Fitch Ratings.
It is pertinent to note that outstanding ESG sukuk grew significantly in 2023, reaching $36.1 billion globally at year-end (all currencies). Almost all Fitch-rated ESG sukuk are investment-grade, said Bashar Al-Natoor, Global Head of Islamic Finance at Fitch.
