Sukuk defaults around the world have remained rare, as most issuances have continued to be dominated by creditworthy governments and their related entities, according to Fitch Ratings.

Sukuk default rates globally stood at only 0.19% of all sukuk issued as of the end of 2024, the ratings agency noted.

Most defaults have so far been linked to corporates and some financial institutions. To date, no sovereign sukuk has defaulted, Fitch said on Wednesday.

The ratings agency did not specify the number of issuances to date, but between January 1, 2000 and August 15, 2024, Fitch recorded more than 22,700 sukuk issuances worth around $5.2 billion.

Out of the total number, only 62 worth $5.2 billion defaulted.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com