Fitch: Gulf Leads in Aggregated Islamic Financing Markets
Fitch confirms Gulf dominance in Islamic financing as ASEAN shares grow
Translated by Qiyas from الراي — Original source
While Gulf countries continue to lead the list of largest exporters of these financings, ASEAN markets are gaining a growing share, supported by the execution of large financing deals, particularly in Malaysia and Singapore.
The agency, in a recent report, noted that Islamic banks are poised to maintain their activity in the syndicated financing market, given the continued availability of sufficient liquidity levels, alongside their pivotal role in the banking systems of most major markets.
It also highlighted the growing participation of Japanese and Chinese banks in Islamic financings in the Gulf region, after they emerged as key lenders in the traditional syndicated financing market in the area, as part of their efforts to strengthen their regional presence and expand their client relationships.
Conversely, geopolitical tensions and rising financing costs could exert pressure on activity levels in the coming period.
In this context, Bashar Al-Natour, Global Head of Islamic Finance at Fitch, said that syndicated Islamic financing activity is expected to continue benefiting from the need to diversify funding sources and the sustained appetite of Islamic banks to participate in these deals across major markets.
He added that the ASEAN region continues to strengthen its market share through large financing deals, particularly in Malaysia and Singapore, despite the continued dominance of Gulf countries in the market, noting that the participation of Islamic banks and multilateral institutions rated by Fitch will remain supported by adequate liquidity levels and the overall credit strength of these institutions.
Regarding market indicators, the value of syndicated Islamic financings subscribed to in major markets during the first nine months of 2026 reached approximately $48.1 billion, recording a 5% growth compared to the same period last year.
The value of traditional syndicated financings declined by 20%. As a result, the Islamic share exceeded 28% of total syndicated issuances in those markets, while the total outstanding balance of global syndicated Islamic financings surpassed $221 billion.
With regard to the creditworthiness of institutions operating in the sector, Fitch reported that approximately 65% of Islamic banks and multilateral institutions rated by the agency globally fall within the investment-grade category, excluding national credit ratings.
