The Securities and Exchange Commission (SEC) said it will raise awareness of Sukuk as an alternative financing instrument, as the agency is advancing the development of the country’s Islamic finance market by encouraging companies to offer Shari’ah-compliant investment products.
Sukuk refers to certificates of equal value representing undivided investment, interest in or rights to the underlying assets, usufructs and services or projects undertaken in accordance with Shari’ah principles.
Implemented through SEC Memorandum Circular No. 12, Series of 2026, the guidelines provide the regulatory framework for Sukuk issuances, including rules on its registration, permissible structures and reporting and disclosure requirements of issuers, among others.
‘Our vision is simple: a Philippine capital market that is deeper, broader, and more inclusive-a market where every legitimate source of capital can find a place, and every investor can participate with confidence. Islamic finance is part of that vision,’ SEC Chairman Francis E. Lim said.
‘For many investors, financial decisions are shaped not only by economic returns, but also by faith, values, and ethical principles. Our markets must be ready to serve them as well.’
The SEC’s new guidelines allow Sukuk issuances to be made using Shari’ah-compliant structures and other Sukuk structures that may be approved by the agency, as well as the creation of special purpose entities for Sukuk issuances. It also provides the disclosure obligations of Sukuk issuers.
The issuance of the Sukuk guidelines builds on the active Islamic finance landscape with a total of 58 Shari’ah-compliant securities currently listed on the Philippine Stock Exchange and Philippine Sukuk totaling $1 billion issued by the Philippine government in 2023.
Last May, Fitch Ratings said in a non-rating commentary that the Philippine Islamic finance industry is still in the ‘nascent stage.’
Fitch Ratings said the Southeast Asian region’s Islamic finance industry exceeded $1 trillion in the first quarter.
Malaysia stood as the regional leader, with Islamic financing reaching 44 percent of banking system financing at end-2025.