Sukuk passes $1 trillion and becomes ordinary

The London Stock Exchange Group's 2025 Islamic Investment Review, published 2 July, reports that outstanding sukuk worldwide have crossed $1 trillion, with issuance up 14.5% last year and Islamic fund assets up 37% to $223 billion. Two details deserve attention beyond the headline number. First, 41% of foreign-currency issuance now comes from non-Islamic markets, and conventional investors are buying for yield and diversification — Shariah-compliant paper has become ordinary market infrastructure rather than a niche. Second, the constraint LSEG identifies is not demand but supply: too few investable Shariah-compliant assets, leaving portfolios concentrated (44% of compliant equities sit in large US technology firms). A trillion-dollar market that still lacks depth in its own asset base is an unfinished institution — the next decade's work is building the projects, companies and instruments that give this capital somewhere principled to go.

This is a QeRN summary by Ahmed Qerni. Read the original at Trade Finance Global: https://www.tradefinanceglobal.com/posts/global-sukuk-market-exceeds-1-trillion-as-islamic-funds-surge/.