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.