S&P Global Ratings warned that the war in the Middle East has cast a shadow over the global sukuk market, leading to a decline in foreign currency-denominated sukuk issuances and a reduction in total sukuk issuance across the Gulf countries, while local currency issuances in Qatar and Saudi Arabia supported market activity.

The agency maintained its forecast for global sukuk issuance in 2026 at between $270 billion and $280 billion, after total issuance reached $129 billion during the first half of the year, compared with $112.3 billion during the same period in 2025, supported by local currency issuances.

According to the report, total sukuk issuance in the Gulf Cooperation Council countries declined by 9 percent during the first half of 2026 as a result of the economic slowdown caused by lower hydrocarbon production and weaker non-oil economic activity amid the repercussions of the war.

Source: Union of Arab Chambers