HSBC is the world’s best sukuk house, recognised for its leadership across volume, innovation and execution, and its ability to deliver complex, Shariah-compliant solutions while consistently expanding the reach and depth of the global sukuk market.
2025 marked a record period for the asset class, with global sukuk issuance exceeding $150 billion, driven by increased sovereign funding requirements, notably in Saudi Arabia, alongside tighter regional spreads and the growing use of sukuk as a core funding tool.
Within this context, HSBC distinguished itself not only by market share but by the breadth and complexity of its activity. The bank ranked number one globally across leading league tables, executing approximately $75 billion of sukuk transactions during the year, and playing a major role across virtually all significant issuances in the international market.
HSBC’s leadership is underpinned by a strategy that prioritises scale and innovation. While continuing to play central roles in large sovereign and sovereign-related transactions, the bank has also placed emphasis on bringing new issuers, structures and currencies into the market. This includes introducing multiple debut issuers, from corporates to financial institutions, and executing first-of-kind transactions such as the inaugural corporate sukuk from Turkey and lesser seen euro- and Singapore dollar-denominated sukuk issuances. These transactions not only demonstrate structuring capability but also contribute to the continued development of sukuk as a globally relevant financing tool.
HSBC’s consistent market leadership, execution track record and deep market knowledge gave us a unique ability to bridge global Islamic pools of liquidity and deliver for our clients
Ali Taufeeq
A defining strength of HSBC’s platform is its deep expertise in Shariah-compliant structuring, particularly under evolving Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. The bank has played a leading role in helping issuers navigate a changing regulatory environment, most notably through its work on Saudi Arabia’s first fully AAOIFI-compliant sukuk programme. This required the development of a new structure that could meet regulatory requirements across multiple jurisdictions, while maintaining appeal to a broad investor base. The process involved extensive engagement with legal advisers, co-arrangers and Islamic financial institutions, ultimately delivering a framework that enabled the Kingdom to access the full spectrum of Islamic liquidity.
This transaction, a $5.5 billion dual-tranche sukuk, stands out as one of the most significant deals of the year. It was more than three times oversubscribed and priced at the tightest levels in Saudi Arabia’s history, reflecting both strong global demand and the success of the structure in bringing Islamic investors back into the market. Importantly, the deal also demonstrated broad geographic distribution, including substantial participation from Asian investors, underscoring HSBC’s ability to connect global pools of liquidity.
Connection and execution
This ability to bridge markets is central to HSBC’s franchise. The bank has continued to strengthen the Asia-Middle East corridor, undertaking investor education initiatives, roadshows and direct engagement with Asian institutions to build familiarity with sukuk structures and facilitate internal approvals. As a result, Asian participation has expanded beyond large benchmark transactions into a wider range of issuances, improving diversification and depth across the investor base.
Execution has also been a key differentiator. In response to increased market volatility, HSBC has advised leading issuers on the adoption of intraday execution strategies, enabling transactions to be priced and completed within a single day. This approach has been successfully implemented by major sovereigns and corporates, supported by the bank’s ability to coordinate early-stage Shariah approvals and align investor readiness. The result has been more efficient execution and improved pricing outcomes in a dynamic market environment.
Alongside international activity, HSBC has maintained strong capabilities across local currency sukuk markets, leveraging its global balance sheet and structuring expertise to deliver a diverse range of issuances. From large-scale project financings to social and hybrid capital sukuk, the bank has demonstrated an ability to operate across formats and jurisdictions, supporting clients with funding and capital markets development objectives.
Crucially, HSBC’s role extends beyond transaction execution. The bank acts as a trusted adviser to sovereigns, sovereign wealth funds and corporates, often working with clients from the initial design of sukuk programmes through to repeated market access. Its early involvement in programme development, combined with its expertise in structuring and regulatory engagement, has resulted in long-standing relationships and a high level of repeat mandates from key quality issuers.
Ali Taufeeq, head of sukuk financing, says: “In a record year for global sukuk supply, HSBC’s consistent market leadership, execution track record and deep market knowledge gave us a unique ability to bridge global Islamic pools of liquidity and deliver for our clients. In 2025, we introduced new markets in the sukuk space, including the first-ever corporate international sukuk out of Turkey, along with rare EUR sukuk transactions, and drove activity across the Asia-Middle East corridor. This award reflects our best-in-class execution for issuers and our position as the globally trusted and consistent adviser or sovereigns, corporates and investors.”
HSBC’s performance reflects a sukuk franchise defined by scale, innovation and market leadership. Its ability to deliver at scale, expand into new market segments, navigate evolving regulatory frameworks and connect global liquidity pools puts it at the head of the field in an increasingly competitive landscape. In a record year for the asset class, HSBC not only led the market but also shaped its future direction, making it the clear choice for Euromoney as the world’s best sukuk house.
