GLOBAL: Total ESG debt issued in Q1 2025 in emerging markets (excluding China, in US dollars only) saw ESG Sukuk shares increase to over 50% – from 20% in 2024. With the rest being ESG bonds, Fitch Ratings says this development shows the rising maturity of ESG Sukuk, their growing role and potential in funding sustainability initiatives.
Global ESG Sukuk reached about US$50 billion outstanding in Q1 2025, up by 21.6% year-on-year (y-o-y), surpassing the global Sukuk market growth (10.8% y-o-y). Fitch Ratings says growth factors include funding diversification goals, demand from Islamic and ESG-focused investors in Europe, Asia and the US, alongside government-driven economic transformations and sustainability goals.
Global ESG Sukuk issuance in Q1 2025 reached US$4.3 billion, up by 9.6% y-o-y, driven by Saudi Arabia (64%), the UAE (28%) and Malaysia (8%).
