...Outlook: Fitch Ratings expects global ESG sukuk to remain sizeable in emerging markets (EMs), but concentrated in Malaysia, Saudi Arabia, the UAE and Indonesia. Demand from global ESG investors, as well as funding diversification strategies, will support the segment. Several GCC and Malaysian Islamic banks have sustainability targets, including for ESG issuance and investments. However, segment growth is weighed by broader geopolitical volatility, rate uncertainty and international investors' appetite towards EM debt, as well as by extra sharia and ESG requirements. Strong Credit Quality: About 95% of Fitch-rated ESG sukuk were investment grade at end-3Q26. Around 75% of issuers were on Stable Outlooks, with 21% on Negative Outlooks and about 4% on Rating Watch Negative. Fitch-rated US dollar ESG sukuk was about USD26 billion, or 11% of all Fitch-rated dollar sukuk. Fitch rates over 67% of global dollar ESG sukuk. Fitch also rated the first Indonesian rupiah ESG sukuk in its rated universe,...
