GLOBAL SUKUK REVIEW: SEPTEMBER 2011
A construction boom and refinancing needs fueled growth in the GCC sukuk market, while issuers from all over the world are expected to make a strong comeback or a first appearance.
At least USD 5.7 billion worth of sukuk were issued in September 2011, a 9% increase from the same period last year. Except for the small regular issues by the central banks of Bahrain and Gambia, Malaysia was the sole issuer of all of the sukuk in September. The Malaysian government, through its central bank, alone sold USD 5.45 billion. Malaysia would have achieved a further milestone if its Khazanah issued the dim sum sukuk that it was planning to issue in September.
However, this does not necessarily reflect the full picture of the global sukuk landscape during the first nine months of the year or the remainder of the year. Figures compiled by Zawya Sukuk Monitor reveal that USD 63 billion of sukuk were issued during the first nine months of 2011, up 90% from the USD 33 billion issued during the same period last year. This makes 2011 the best year on record even before it ends.
Although Malaysia accounted for a hefty 69% of the total with USD 43.5 billion, 11 other countries contributed. The six GCC states issued a combined USD 16.1 billion or 25% of the total. New entrants this year include Yemen, Iran and Jordan. GCC sukuk issuance was hindered partly by the unrest in the many parts of the MENA region.
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