MANAMA, Feb. 22 -- With 90 per cent of Sukuk Rated B+, the Bahraini Islamic finance industry is well-developed, according to Fitch Ratings.

Fitch Ratings expects continued growth in 2024-2025, driven by banking sector consolidations, bottom-up demand, sukuk's growing role in diversifying government funding and meeting fiscal deficits, and increasingly enabling regulations.

Fitch rates over 80% of the US dollar sukuk outstanding from Bahrain (USD11.4 billion), with 90.3% rated 'B+' at end-2023.

"We estimate the Bahraini Islamic finance industry at USD77 billion as of end-2023, split between Islamic banking assets (79%), outstanding sukuk (21%), and takaful contributions (0.2%)," Fitch in a statement issued on Thursday said.

The expansi...