ESG Sukuk Set to Surpass 50 Billion USD by 2025, Fueled by Rising Demand and Favorable Conditions
ESG Sukuk Set to Surpass 50 Billion USD by 2025, Fueled by Rising Demand and Favorable Conditions

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The global issuance of ESG sukuk is projected to exceed USD 50 billion by 2025, driven by rising investor demand and government sustainability initiatives in several Muslim-majority countries, according to Fitch Ratings. The report indicates that favorable financing conditions, particularly anticipated U.S. Federal Reserve rate cuts, will support this growth. Currently, ESG sukuk accounts for 5% of total global sukuk, with significant contributions from emerging markets. Despite these prospects, challenges such as geopolitical risks and compliance issues with Shariah law persist, indicating a complex landscape for the sukuk market.

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