Prime Highlights :
- Egypt controls 48 percent of Africa’s sukuk market, making it the continent’s top issuer, Fitch Ratings says.
- Regulatory reforms and closer ties with the Gulf Cooperation Council are driving Egypt’s sukuk growth.
Key Facts :
- Africa’s outstanding sukuk topped $7 billion in August, up 16 percent from a year earlier.
- Nigeria follows at 26 percent, South Africa at 15 percent, and Benin at 7 percent.
Background :
Egypt now accounts for 48 percent of Africa’s outstanding sukuk, cementing its position as the continent’s largest market, Fitch Ratings said in a new report. Regulatory reforms and stronger economic ties with the Gulf Cooperation Council have fueled the growth.
African sukuk crossed $7 billion outstanding in August, marking a 16 percent rise year on year, according to Fitch. The agency said sukuk is becoming an alternative funding tool for several African sovereigns, helping them diversify funding sources and draw interest from GCC and African Islamic banks, Shariah-compliant funds, and multilateral lenders.
Still, the market remains underdeveloped. Most African countries lack the regulation needed to support sukuk growth, and domestic Islamic financial institutions are either small or missing entirely in many places.
Egypt issued its debut US dollar sovereign sukuk in 2023 and has since become a regular issuer, Fitch noted. Egypt then issued its first local-currency sukuk in 2025 and kept issuing through early 2026. Egyptian Islamic banks responded with strong demand, these banks hold roughly 5 percent of the country’s banking system assets.
Nigeria comes next at 26 percent of the market. South Africa holds 15 percent, and Benin holds 7 percent. Together, these figures show just how concentrated Africa’s Islamic capital markets still are.
