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.
