The Securities and Exchange Commission is set to raise awareness of sukuk as an alternative way for businesses and projects to raise funds, as it works to develop the country’s Islamic finance sector and encourage more Shari’ah-compliant investment products. Sukuk refers to equal-value certificates that represent shared rights to underlying assets, services or projects, all arranged in line with Islamic principles.
The new regulatory framework is set out in SEC Memorandum Circular No. 12, Series of 2026, which lays out clear rules for registering sukuk, allowed structures, and what information issuers must share publicly. Under these guidelines, sukuk may be offered using approved Shari’ah-compliant formats, and special dedicated entities set up to handle issuances, with full transparency requirements for those offering the instruments.
SEC chairman Francis E. Lim said the move forms part of the broader goal to build a deeper, wider and more inclusive capital market where all legitimate sources of capital and all types of investors can take part with confidence. He noted that many investors base their choices not only on profit but also on personal beliefs and ethical standards, and the country’s financial system must be able to serve these groups as well.
The new rules build on steady progress already seen in Philippine Islamic finance: there are currently 58 Shari’ah-compliant securities listed on the local stock exchange, and the national government issued $1 billion worth of sukuk back in 2023.
