Published on 17 Jul 2018.
RAM Ratings maintains its projected global sukuk issuance at USD75 billion-USD85 billion, based on the growth trends in sukuk issues from Malaysia, Indonesia, Bahrain, Kuwait and UAE in the first six months of 2018. “Overall, the sukuk market’s showing in 2018 will depend on the performance of the global economy and the state of investment recovery in key Islamic finance countries,” notes Ruslena Ramli, Head of Islamic Finance at RAM.
Malaysia still leads in terms of the number of sukuk issuance and financing amount. As at end-June 2018, total global sukuk issuance had slipped 5.2% y-o-y to USD50.3 billion (end-June 2017: USD53.0 billion). This was largely due to declines in sukuk issuance from Qatar (-63.6%), Saudi Arabia (-37.9%), and Turkey (-18.0%). Malaysia had increased its sukuk issuance to USD19.4 billion as at end-June 2018 (end-June 2017: USD18.6 billion), translating into a healthy 38.7% market share of global sukuk issuance. At the same time, Indonesia charted a 52.6% jump to USD6.6 billion (end-June 2017: USD4.3 billion). By contrast, the GCC posted a contraction of 19.1% to USD21.3 billion (end-June 2017: USD26.3 billion). Nevertheless, the GCC’s sovereign sukuk issues took up the lion’s share (67.6%) of its total sukuk issuance, reversing earlier market trends. Prior to 2017, the percentage of sovereign sukuk issuance only averaged some 25%.
The 1H 2018 Sukuk Review Report is available to subscribers through our website, www.ram.com.my. Non-subscribers may purchase the report at RM500 per copy.
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