Economy Local 2026-02-17T22:18:06+00:00

Islamic Syndicated Financing to Remain Key Source in 2026

Fitch agency forecasts that Islamic syndicated financing will remain one of the most important funding sources in 2026, with main activity in Saudi Arabia and the UAE. Market growth will be driven by potential US interest rate cuts, falling oil prices, and diversification of funding sources.


Islamic Syndicated Financing to Remain Key Source in 2026

According to Fitch agency, Islamic syndicated financing is poised to remain one of the key sources of funding in 2026, with activity primarily concentrated in Saudi Arabia and the UAE. The agency clarified that forecasts point to strong activity in 2026, driven by several key factors. These include the growing role of Islamic banks in national banking systems, ease of requirements, and speed of implementation, as well as the reduced complexity of syndicated financing compared to traditional sukuk and bond issuances. It is also expected that potential interest rate cuts in the US, declining oil prices, cross-sectoral funding needs, and goals to diversify funding sources will bolster growth.

The report, citing Bashar Nator, states...