Standard Chartered strengthens role as Sukuk market adviser amid sector growth

As the global Islamic finance industry surpasses USD 5.5 trillion in assets in 2024—reflecting a 12% increase from 2023 and 43% from 2020—it continues to demonstrate both  resilience and growing relevance. The  evolution of the sector is not only driven  by traditional Islamic banking ; rather, it is increasingly shaped by innovative capital mobilisation strategies, especially through  Sukuk. Today, Sukuk accounts for  18% of total global Islamic financial assets, valued at USD 971 billion in 2024 and projected to reach USD 1.5 trillion by 2028.

This growth marks a fundamental  shift in how capital is raised across Islamic markets. Governments, financial institutions and corporates are turning to Sukuk not only to meet Shariah-compliance standards, also to broaden access to global  investor bases, and align with sustainability and ESG objectives. Sukuk no longer viewed as an alternative financing tool – it has become a mainstream,  preferred instrument of choice.

Standard Chartered has become a key enabler of this  transformation, advising clients across jurisdictions and asset classes on how to structure Sukuk that meet both regulatory requirements and investor expectations.

Driving market confidence in Sukuk

Standard Chartered’s deep commitment to Islamic finance is reflected in its leading role as a premier Sukuk advisor. In 2024, the Bank topped the Bloomberg League Tables with 54 completed transactions—the highest among any institution—capturing a 10.45% market share. Its end-to-end  advisory services, from structuring to execution, have enabled clients to access diverse funding sources, expand their investor base, and remain aligned with evolving frameworks.

A standout example is Standard Chartered’s  role as sole structurer for  Al Rajhi Bank’s  landmark USD 1 billion sustainable Sukuk—its first of this kind. This Sukuk, structured as an  Additional Tier 1 (AT1) instrument, is perpetual in nature and  strengthens the bank’s capital position without  a fixed maturity date. Notably, it was also the first AT1 issuance from Saudi Arabia to be rated investment-grade, marking a key milestone in the region’s capital markets.

Despite a tight timeline, the deal attracted strong demand from global investors, generating USD 3.5 billion in orders—more than triple the issuance size.  This enabled Al Rajhi to secure  favourable borrowing pricing. Around, 40% of the Sukuk allocation went to international investors, marking one of the highest levels of foreign participation ever seen for such deals in the region.

Proceeds from the Sukuk will finance critical initiatives such as  renewable energy, clean transport, affordable housing, and job creation—reflecting Al Rajhi’s commitment to sustainability. The successful outcome underscored Standard Chartered’s ability to deliver innovative Islamic finance solutions that align with both financial goals and social impact.

For multinationals clients and those operating across diverse markets, Standard Chartered provides a global network few banks  can match. With presence in  key financial centres and emerging markets, the bank offers client-centric support and tailored services, ensuring  seamless cross-border execution and enhancedvisibility. This positions Standard Chartered as a trusted strategic partner for clients seeking scale, agility, and continuity across geographies.

A market aligned with ESG principles

Islamic finance and ESG are not separate paths —they increasingly intersect.   Shared values  such as ethical conduct, transparency and responsible stewardship are at the core of both framework, making  ESG-linked finance a natural extension of Shariah-compliant investing. This convergence is being increasingly recognized by investors. In fact, ESG-linked Sukuk issuance has more than doubled since 2020 reaching USD 15.2 billion in 2024, and now  accounts for over 6% of the total Sukuk market, according to the London Stock Exchange Group (LSEG) Islamic Finance Research 2025.

Standard Chartered plays a key role in supporting this evolution –  advising issuers on Sukuk structures that  align with Shariah principles and simultaneously address environmental or social goals. The bank has also contributes to the development of sustainable finance frameworks that integrate Maqasid al Shariah with global benchmarks such as the UN Sustainable Development Goals (SDGs).

Expanding access through innovation

In the UAE, Standard Chartered’s Islamic banking arm, Saadiq, is expanding access to Sukuk through retail and wealth offerings. . In 2024 alone,  over 48 new Sukuk products were launched for retail investors, complemented by  digital-first solutions such as the Saadiq Wealth$aver and Wakalah Fixed Deposit Account. In partnership with  Franklin Templeton, the bank also co-developed two UAE-domiciled Islamic investment funds.

With 67% of customers digitally active and 100% straight-through processing for credit card and deposit onboarding, Saadiq’s digital retail proposition delivers  both responsiveness and efficiency.

What sets Standard Chartered apart is not just its footprint—spanning over 25 markets—but its ability to deliver tailored outcomes amid evolving regulatory and structural dynamics. From sovereign issuers to corporates, clients benefit from local insight , global execution, and Shariah-anchored advice, making Standard Chartered a trusted partner in Islamic finance.

Leading with purpose

At the forefront of Standard Chartered’s  global Islamic strategy is Khurram Hilal, CEO, Group Islamic Banking  Standard Chartered (Saadiq). With over two decades  of experience across various markets including wealth management, consumer banking, and financial markets, Hilal has been instrumental in shaping  the Bank’s Islamic finance franchise across Asia, Africa, the Middle East, Europe, and North America. His leadership has been central to strengthening the Bank’s position as a trusted and innovative player  in Islamic finance.

Hilal has also played a key role in driving industry dialogue and policy development, working closely with  regulators and multilateral bodies. He serves on  the boards of Standard Chartered Saadiq Berhad in Malaysia and the International Islamic Financial Market (IIFM) in Bahrain. His contributions reflect a deep  commitment to advancing the future of Islamic finance. In recognition of his impact, recognized he was named  Islamic Finance CEO of the Year at the Global Islamic Finance Awards 2025.

Commenting on this, Hilal said: “This award is a recognition of the journey we’ve taken to transform Islamic banking through innovation, sustainability and inclusivity. As Islamic finance continues to converge with ethical and sustainable finance, its appeal is expanding. We’ve focused on launching solutions that go beyond borders and bring long-term value to communities and ecosystems across our markets.

The Bank’s strong performance on the retail and wealth banking front, leadership is spearheaded by Ali Allawala, who brings more than 25 years of experience across the UAE, Malaysia, Saudi Arabia, Egypt, and Pakistan. As Head of Islamic Banking UAE while overseeing the global Islamic Wealth and Retail Banking business across eight markets. His prior roles include CEO of Standard Chartered Saadiq in Malaysia and senior positions at Samba and Citibank.

Alawala demonstrated visionary leadership in Islamic banking by delivering innovative Shariah-compliant products amid market, regulatory, and economic challenges. Through strategic structuring, collaboration with Shariah boards, and a focus on digital transformation and sustainability, he ensured compliance, profitability, and competitiveness—strengthening the bank’s position as a leader in ethical Islamic finance. He was named Islamic Banker of the Year at the Global Islamic Finance Awards 2025.

Alawala commented “These awards are a testament to the bank’s strong franchise and market leadership in global Islamic Investment banking and Sukuk space, and a recognition of the trust our clients place in us year after year.”

 Recognition for leadership

The bank was recognised at the Global Islamic Finance Awards 2025 with distinctions including Best Sukuk Adviser of the Year, Sukuk Deal of the Year, Best Islamic Retail Bank in UAE, Best Islamic Investment Bank across multiple geographies, including the UAE and the Middle East.