Sukuk Liquidity Rebounds Near Pre-War Levels, Gaps Remain

Global sukuk market liquidity has moved back toward pre-war levels after a March trough, according to Fitch Ratings’ latest liquidity tracker. More than 75% of Fitch-rated sukuk carried a liquidity score above 50 as of 4 August 2026, up from 64% in late March 2026 and still trailing January 2026’s level of 81%, per Fitch Ratings.

Fitch-rated sukuk carried a median liquidity score of 64 on 4 August 2026, rebounding from a trough of 55 in March 2026, according to Fitch Ratings. That reading remains below the pre-war level of 68, and the recovery is fragmented across credit rating, country and currency, per Fitch’s August tracker.

Investment Grade at 69 on 4 August, Non-Investment Grade at 40

Fitch-rated investment-grade sukuk averaged a liquidity score of 69 on 4 August 2026, against 40 for non-investment-grade sukuk, according to Fitch Ratings. Mettis Global’s 14 August 2026 report on the tracker adds the earlier readings for both: investment-grade sukuk at 64 in March 2026 and 72 in January 2026, and non-investment-grade sukuk at 33 in March 2026 and 48 in January 2026, per Mettis Global.

Where Liquidity Scored Highest

As of 4 August 2026, Fitch’s tracker showed the strongest liquidity in Hong Kong, Malaysia, Indonesia, Egypt and the supranational-issuer segment, according to Fitch. Four markets had already pushed past their pre-war readings by August: Egypt, whose score sat 11 points above its pre-war level, plus Oman, Malaysia and Ireland, per Fitch’s release. Halal Times has reported separately on Malaysia’s role in global sukuk growth.

Currency and Sector Splits

Currency data as of 12 August 2026 showed Malaysian ringgit-denominated sukuk recording the highest liquidity score of any currency segment and the only currency segment above its pre-war mark, according to Fitch. Dollar-denominated GCC sukuk and bonds both sat around 50 on the same date, while across all currencies sukuk scored 57 on average versus 53 for conventional bonds, Fitch reported. Among sectors, only asset-backed paper climbed past its pre-war mark, according to Fitch, with Mettis Global’s 14 August 2026 report placing financial institutions and sovereign sukuk next in the recovery ranking.

Sukuk Score Higher Than Gulf Bonds in Local Currency

Sukuk traded more liquidly than conventional bonds in GCC local-currency markets, scoring 68 against a bond reading of 57, according to Arabian Post’s 14 August 2026 report. Qatar and the UAE posted identical scores for sukuk and bonds, Kuwait’s bonds stayed more liquid than its sukuk, and sukuk saw easier trading than conventional bonds in Saudi Arabia, Oman and Bahrain, Arabian Post reported. Halal Times has published a separate practitioner’s comparison of sukuk and conventional bonds in 2026.

Issuance Slows, Outlook Stays Cautious

Sukuk issuance across Malaysia, Indonesia, Turkiye, Pakistan and the GCC totaled $125 billion in the first half of 2026, a 36% decline from a year earlier, with more than 80% of rated sukuk in the period carrying investment-grade ratings, according to Arabian Post’s 14 August 2026 report. Halal Times has reported separately on first-half GCC sukuk issuance.

Fitch’s report, as conveyed in Mettis Global’s 14 August 2026 coverage, concluded that “liquidity is likely to stay constrained for as long as regional tensions continue.”

Frequently Asked Questions

What is Fitch’s current sukuk liquidity score?

Fitch-rated sukuk carried a median liquidity score of 64 as of 4 August 2026, according to Fitch Ratings. That marks a climb from a March 2026 trough of 55, though the reading hasn’t returned to the pre-war level of 68.

Where was sukuk liquidity highest in August 2026?

Fitch recorded the highest sukuk liquidity scores in Hong Kong, Malaysia, Indonesia and Egypt, along with supranational issuers, as of 4 August 2026. Egypt, Oman, Malaysia and Ireland had already topped their pre-war levels by August, per Fitch.

Is sukuk more liquid than conventional bonds in the Gulf?

In GCC local currencies, sukuk carried a liquidity score of 68 versus 57 for conventional bonds, according to Arabian Post’s 14 August 2026 report on Fitch’s tracker. In GCC dollar markets, sukuk and bonds each averaged close to 50 as of 12 August 2026, according to Fitch.

Has sukuk market liquidity fully recovered from the regional tensions?

No, the recovery isn’t complete: the median liquidity score of 64 on 4 August 2026 sits four points under the pre-war level of 68, and Fitch’s report, as relayed by Mettis Global on 14 August 2026, said liquidity is “likely to stay constrained for as long as regional tensions continue.”

How much sukuk was issued in the first half of 2026?

Sukuk issuance across Malaysia, Indonesia, Turkiye, Pakistan and the GCC totaled $125 billion in the first half of 2026, a 36% decline from a year earlier, with more than 80% of rated sukuk in the period carrying investment-grade ratings, according to Arabian Post’s 14 August 2026 report.