...Pipeline Buildup: Global sukuk issuance is likely to extend its 3Q26 recovery to end-2026 and maintain its representation among emerging-market (EM) US dollar debt issuance. Fitch Ratings expects the rebound to be driven by cross-sector funding needs and sustained demand from Islamic investors. In addition, expectations of a 25bp US Fed rate increase in December could encourage some issuers to access the market ahead of a further rise in funding costs. Recent regulatory developments, along with initiatives in tokenization, ESG, retail and RMBS sukuk, could aid market maturity. However, geopolitical volatility and uncertainty could weigh on market sentiment, while higher rates may reduce international investor appetite for EM debt. Activity Recovering: Sukuk remains a sizable segment of EM debt at 13% of all US dollar debt issued in 3Q26 (excluding China; 3Q25: 16%). There was a sharp pickup in US dollar sukuk issuance in 3Q26 across the core markets of the GCC, Malaysia, Indonesia, Turkiye...
