BAKU, Azerbaijan, April 7, 2026. Regional conflicts may slow the Islamic finance growth in Gulf Cooperation Council (GCC) states, said Paul Gamble, Senior Director and Head of MEA Sovereign Ratings at Fitch Ratings, during the Islamic Finance Symposium 2026, Trend reports.
“More broadly, there has been a structural increase in the use of Islamic finance instruments, including Sukuk and financing across the GCC and core issuer markets,” Gamble said.
He noted that ongoing regional conflicts could affect market growth. “While the conflict lasts and beyond it, the broader development of the market will naturally slow, making investors more cautious,” he explained.
Gamble highlighted the potential risks of extended conflict on the energy sector. “There are clearly negative risks to our baseline. We have an adverse scenario of $100 per barrel of oil per year based on a more extended conflict,” he said.
Despite these challenges, he emphasized the importance of diversifying financing sources in the GCC. “The development of the region requires broader financing sources. Historically, there has been a heavy reliance on bank financing, but the growth of local currency markets is essential,” Gamble noted.
He added that tougher external financing conditions could support local markets. “This environment should strengthen local currency markets, including Sukuk and local currency instruments, which will help the financing structure of the Gulf and broadly support the region’s development. This could provide an additional boost to the market,” he concluded.