A wave of digital innovation is reshaping Islamic finance across the GCC, with tokenised sukuk, blockchain settlement, and AI-driven Shariah-compliant tools emerging as the next frontier of capital raising, according to Fitch Ratings. Analysts say these technologies will gradually redefine how Islamic bonds are structured, sold, and traded.
Fitch’s Bashar Al Natoor noted that tokenisation enables fractional ownership and instant blockchain-based exchange of sukuk, a model already gaining traction as GCC regulators explore digital financial frameworks. However, he stressed that adoption will unfold in stages, contingent on regulatory openness and Shariah approval, especially given its largely untested nature in Islamic finance.
Momentum is building across the region: Bahrain introduced blockchain-enabled sukuk investment through fintech Inablr; the UAE launched retail T-Sukuk allowing smaller digital investments; and Abu Dhabi Islamic Bank recently rolled out a “Smart Sukuk” initiative. Saudi Arabia’s CMA and SAMA are also enabling fintech growth in digital debt instruments, with STC’s Tali Ventures investing in local sukuk fintech Tarmeez Capital.
The shift comes as GCC debt capital markets remain strong, with outstanding volumes surpassing $1 trillion in Q3 2025 and global sukuk issuance on track to exceed 2024 levels. ESG-linked sukuk are expected to grow as well—though Fitch says niche products like “blue sukuk” will take time to mature.
With GCC markets investing heavily in digital infrastructure and regulatory sandboxes, analysts expect tokenised and programmable sukuk to play an increasingly central role in future sovereign and corporate funding.
