Tuesday 29, May 2018 by Jessica Combes

Global Sukuk issuances surges 44 per cent in Q1


The upswing is likely due to a boost from Saudi Arabia

A total of $12 billion worth of Sukuk was issued in March 2018, bring global Sukuk issuance to $30 billion in Q1 2018—a 44.4 per cent surge from $20.8 billion for the same period last year, according to the latest statistics by RAM Ratings.

The increase is likely due to a boost from Saudi Arabia with issuance reaching $6.5 billion as at end-March 2018 as compared to $184.8 million at the end of March 2017, marking the highest growth, according to the Khaleej Times.

Malaysia had issuances rising from $9.6 billion to $11.5 billion, accounting for the second-largest year-on-year increase, followed closely by Indonesia at $5.5 billion, the UAE at $3.3 billion and Turkey at $1.4 billion, the ratings agency noted.

Malaysia retained the top spot in terms of global Sukuk issuance with a 38.2 per cent market share worth $11.5 billion as at end-March 2018. Of that, 17.4 per cent was issued by the International Islamic Liquidity Management (IILM). Saudi Arabia stayed in second place with a 21.7 per cent share worth $6.5 billion as at the same date, Indonesia close in third place with 18.2 per cent and the UAE 10.8 per cent.

Outstanding global Sukuk had increased to $430.2 billion as at end-March 2018 from $326.3 billion a year earlier. Malaysia's sukuk market remained the world's largest, accounting for 49.5 per cent of outstanding global sukuk as at the same date, Khaleej Times reported.

A total of $174.17 billion was raised in the GCC bonds and Sukuk market during 2017, an increase of 3.96 per cent over $167.54 billion raised in 2016, according to Marmore Intelligence. Out of this, $69.9 billion was raised by GCC central banks' local issuances while $104.26 billion was raised by GCC sovereign and corporate issuances.

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