GDP-linked Sukuk: A tool for economic growth and stability
This article is produced and sponsored by IsDBI. It was first published in the State of the Global Islamic Economy 2025/26 report produced by DinarStandard. The report can be downloaded from here.
I. Introduction
The alarming rise in global public debt demands innovative, long-term financing solutions. For the Global South, the “Looming Debt Crisis” highlights the need for transformative approaches beyond temporary relief. Among these, GDP-linked bonds are emerging as a promising pathway for sustainable development financing.
First proposed in the 1980s and gaining renewed support after successive debt crises, GDP-linked debt aligns repayment with economic performance. Supported by leading economists and the IMF, this model offers a sustainable way to manage debt and promote sustainable growth.
Islamic finance principles, rooted in risk-sharing, make GDP-linked Sukuk a natural fit for development finance. By tying obligations to GDP, these Sukuk provide equitable and resilient solutions that align with Islamic ethics.
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Dr. Sami Al Suwailem Acting Director General, IsDBI