BAKU, Azerbaijan, April 7. Sukuk market entered 2026 with strong credit fundamentals, said Ian Linnel, President of Fitch Ratings, during the Islamic Finance Symposium 2026, Trend reports.
“Sukuk is now a vital funding tool in many countries in emerging markets, and there are currently more than $1 trillion of Sukuk outstanding globally,” Linnel said. “Outside the core markets, we are seeing inaugural Sukuk issuances in new markets such as Australia, the UK, and Sri Lanka.”
He noted that the global Sukuk market entered 2026 with strong credit fundamentals. “Over 80% of Fitch-rated Sukuk are investment-grade, 90% of ratings have stable outlooks, and there have been no defaults in the past four years,” Linnel added.
The Fitch president also highlighted the increasing systemic importance of Islamic banking. “Islamic banking is gaining systemic importance in around 17 jurisdictions worldwide, and these banks now hold up to 85% of domestic market share in some key markets,” he said.
Despite this growth, Linnel acknowledged ongoing challenges in the sector, including regulation, standardization, Sharia compliance, and product offerings. He warned that as the industry expands, new credit considerations and broader risks, such as the conflict in Iran, emerge. “This creates a space where Fitch's independent, transparent, and objective perspectives are more vital than ever as we help to support the industry's development through our credit insights,” he said.
Linnel also outlined Fitch’s long-standing commitment to Islamic finance. “As many of you will know, Fitch established a dedicated Islamic finance group over a decade ago. This group has been instrumental in spearheading our Islamic finance initiatives and mandates,” he said.
He highlighted Fitch’s leadership in the sector: “Fitch now rates more Islamic banks, Islamic insurers, Sukuk programs, and SPVs than any other global credit rating agency. We rate over 70% of the global US dollar Sukuk market with outstanding values above $240 billion. We also rate more than 70% of the global US dollar ESG Sukuk market.”
Looking ahead, Linnel stressed the need for innovation and collaboration to navigate future opportunities and challenges in Islamic finance. “The opportunities and challenges that the Islamic finance industry faces require thoughtful discussion, innovation, and collaboration,” he concluded.