Sukuk Took 44% of Gulf Debt Sales in Q3 2026
Islamic bonds had a standout summer. In the third quarter of 2026, sukuk accounted for 44% of all debt sales in the Gulf — about $18.8 billion — up sharply from just 15% in the second quarter, according to data compiled by Kamco Invest and reported by CIJ.World on October 4.
The headline numbers
- Sukuk share of GCC debt issuance: 44% in Q3 vs 15% in Q2
- Total Gulf fundraising in Q3: $42.5 billion (down 17.5% from Q2 as higher rates raised borrowing costs)
- First nine months of 2026: $160 billion, up 3.3% compared with the same period in 2025
- Saudi Arabia issued $15.7 billion entirely in sukuk format
Investor demand was strong. Order books were heavily oversubscribed: Kuwait drew more than $18 billion in demand for a $6 billion bond, while Saudi Arabia attracted $16.5 billion in orders for a $3.25 billion sukuk.
What is a sukuk?
A sukuk is often called an Islamic bond. Unlike a conventional bond, which pays interest, a sukuk gives investors partial ownership in an underlying asset, and returns come from the asset’s profits rather than interest payments — which is why sukuk comply with Shariah principles prohibiting riba (interest).
Why the jump?
Analysts point to a few factors: Gulf governments refinancing debt, strong appetite from Islamic investors, and issuers choosing sukuk formats to tap the deep pool of Shariah-compliant liquidity in the region.
A note for readers: this article reports market data for information only. It is not investment advice, and past issuance trends do not guarantee future returns.
