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.