Since being brought to market 30 years ago, Sukuk have enjoyed continued growth within Islamic finance, and have proved resilient to the impact of COVID-19. The first Sukuk was brought to market in 1990. Today, total issuance surpasses $1.35 trillion, and over 15,000 have been issued by a variety of corporate, sovereign, and quasi-sovereign bodies across 31 countries.

Around 90 percent were issued in the past 10 years, and 55 percent in the past five. Their growth and development were further accelerated when several non-Muslim countries issued their debut Sukuk, including Hong Kong, Luxembourg, South Africa, Senegal, and the United Kingdom.

Sukuk is an Arabic word that means ‘certificates. In finance, it stands for bonds that are structured in a Sharia’a-compliant manner. In other words, they are a form of bonds that are accepted by Islamic finance investors and issuers.

They come in various structures such as Ijara, Murabaha, Mudaraba, and many other forms. Sukuk issuers consider that the raised funds are invested in areas that do not contradict Islamic laws.