Turkey's Sukuk Assets Top $41 B as Debt Market Expands Toward $550 B

Fitch Ratings projects that Turkey will stay among the leading issuers in the global sukuk and emerging‑market debt markets. By the first half of 2026, sukuk assets are expected to have risen 25.8% year‑on‑year to exceed $41 billion, while the overall external debt stock is forecast to surpass $516 billion and reach about $550 billion by year‑end. Roughly 64% of new issuances are in Turkish lira and 33% in U.S. dollars, with sukuk accounting for more than 10 billion dollars, or 14% of total DCM issuance.

Turkey is ranked the fifth‑largest sukuk market globally and the sixth‑largest emerging‑market dollar‑denominated borrower (excluding China). Fitch notes that low public‑debt ratios help Turkey maintain access to external financing even in stressed periods, but rising budget deficits, upcoming debt maturities and heightened regional geopolitical risk could pressure investor appetite, liquidity and yields. Most Turkish sukuk carry a BB‑ rating and have not experienced defaults. The report also cites Turkey’s hosting of COP31 and its new National Green Finance Strategy as potential boosters for ESG‑linked debt.

Fitch’s Global Islamic Finance head Bashar Al Natoor warned that regional tensions could limit issuance activity, while foreign investors continue to favor dollar‑denominated Turkish sovereign bonds despite a retreat from local‑currency markets.