Published on 19 Feb 2019.
The volume of global sukuk issuance in 2018 exceeded RAM Ratings’ projection of USD75 bil-USD85 bil, coming in at USD94.4 bil for the year. This was bolstered by the UAE’s stronger growth (from USD3.6 bil in 2017 to USD9.1 bil in 2018), followed by Kuwait (from USD750 mil to USD3.6 bil), Turkey (from USD2.2 bil to USD3.9 bil), Bangladesh (from USD63.2 mil to USD1.1 bil) and Indonesia (from USD14.9 bil to USD15.5 bil). Notably, Malaysia maintained its leadership with USD32.8 bil of global sukuk issuance while Saudi Arabia (USD21.4 bil) and Indonesia (USD15.5 bil) ranked a respective second and third.
The latest edition of RAM’s Sukuk Snapshot highlights that a total of RM57.7 bil of domestic sukuk was issued in 4Q 2018, leading to RM199.6 bil for the entire year. The financial services and infrastructure & utilities sectors were again the chief driving forces of the better showing, which topped RAM’s full-year projection of RM100 bil–RM120 bil for the local-currency market. In addition, the value of outstanding sukuk had increased to RM844.1 bil as at end-2018 (end-2017: RM760.0 bil), accounting for 60.0% of the overall Malaysian market’s outstanding debt securities.
The Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. This publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. Subscribers can retrieve the Sukuk Snapshot via our website, www.ram.com.my. Non-subscribers may purchase the report at RM530 (inclusive of GST) per copy.
Irfan Afifah Mohd Zaki
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AIN Sulaiman/Faiez Zulkifli
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