Bayt Capital continues to strengthen its presence in Islamic capital markets
Bayt Capital participates in major sukuk issuances by banks and companies amid rising interest rates
Translated by Qiyas from الأنباء — Original source
Global sukuk markets demonstrated a notable ability to adapt to global economic shifts during the third quarter of 2026, amid ongoing uncertainty linked to monetary policies, rising interest rates, and geopolitical challenges that affected debt market dynamics and issuers’ willingness to enter the markets. Despite these conditions, sukuk maintained their position as one of the most important Sharia-compliant financing and investment tools, benefiting from sustained demand from regional and global institutional investors.
According to the latest market data, total international sukuk issuances denominated in US dollars reached approximately $41.94 billion since the beginning of 2026, reflecting continued activity in the Islamic finance market, albeit at a slower pace compared to the same period last year. These results come as investors and financial institutions continue to focus on high-credit-quality instruments and issuances that offer a balance between return and risk.
The third quarter witnessed significant developments in global monetary policy. The US Federal Reserve raised interest rates by 25 basis points, while the European Central Bank continued its tightening policy by raising rates for the second time during the year. These moves impacted global fixed-income markets, leading to higher yields on bonds and sukuk across various maturities, which increased financing costs and negatively affected issuance activity. Many issuers found pricing levels unsuitable, causing a slowdown in issuance volumes or postponements.
Global yield curves also showed notable movements during the period, particularly in the United States, where short- and medium-term government bond yields rose faster than long-term yields, signaling market expectations that interest rates would remain elevated for a longer period. These developments influenced financing strategies and portfolio management, underscoring the importance of careful planning for issuance operations and selecting the right timing to enter the markets.
Amid these changes, Bitex Capital continued to play a pivotal role in Islamic capital markets through its participation in several prominent regional and international sukuk issuances, leveraging its specialized expertise and extensive network of global investors and financial institutions. During the third quarter of 2026, Bitex Capital acted as lead manager for three notable issuances by leading financial institutions and companies, reinforcing its position as one of the key players in the international sukuk market.
Among the most prominent issuances was the Saudi Company for Refinancing’s issuance of international sukuk worth $2.75 billion, which attracted strong investor interest, with total demand exceeding $13 billion—more than four times the size of the issuance. This success reflects continued confidence in Gulf issuances and the ability of issuing entities to attract liquidity from various global markets.
Bitex Capital also contributed to the issuance of $1.5 billion in five-year sukuk by the Islamic Development Bank, where final demand reached 1.8 times the size of the issuance.
The success of this transaction underscores continued investor appetite for issuances with high credit ratings and strong investment-grade quality, which constitute a core component of many global investment portfolios.
Among notable Kuwaiti issuances, Baitak Capital participated in the issuance of International Bank of Kuwait (KIB) sukuk worth $500 million, where investor demand exceeded $1.2 billion, representing 2.4 times the size of the issuance. This success reflects investor confidence in the Kuwaiti banking sector and its ability to efficiently access global markets.
Collectively, these deals highlight Baitak Capital’s growing role in connecting issuers with investors, providing comprehensive solutions that include sukuk structuring, bookbuilding management, investor marketing, and transaction execution in accordance with the highest professional standards. They also demonstrate the company’s capacity to operate across various markets and sectors, whether for sovereign issuances or those by financial institutions and corporations.
The market also witnessed other issuances, including the first additional Additional Tier 1 (AT1) sukuk issuance for Ajman Bank, valued at $300 million. In Southeast Asia, Malaysia executed a sovereign issuance worth $1.5 billion, attracting demand exceeding $9.5 billion. At the sovereign level, Saudi Arabia issued $3.25 billion under its International Sukuk Ijara Program, with subscription demand reaching approximately $16.5 billion.
As the Islamic finance industry continues to evolve and sukuk gain prominence as a key financing and investment instrument, Baitak Capital continues to leverage its expertise and capabilities to support clients in accessing regional and global capital markets. This approach reinforces the company’s position as a strategic partner for institutions seeking to diversify their funding sources and capitalize on opportunities in the global sukuk market.
Against the backdrop of the current economic environment and its rapid transformations, specialized expertise and the ability to reach global investors remain among the most critical factors for issuance success. With a track record rich in achievements and continuous participation in prominent regional and international deals, Baitak Capital continues to solidify its position as one of the leading players in Islamic capital markets and a key contributor to the growth and development of the sukuk industry at both the regional and global levels.
