Manama, Kingdom of Bahrain - The International Islamic Financial Market (IIFM) announced today the publication of the 8th Edition of its annual Sukuk Report. The research report provides useful information on the global Sukuk market, structure trends, key developments and prospects, case studies; articles and country focused reports on IIFM member countries.
The report finds that global Sukuk issuances during the year 2018 stood at USD 123.2 billion, which is a modest increase of 5.5% over 2017 primary market Sukuk issuances of USD 116.7 billion.
The research notes that currently 90.44% of the USD 443.78 billion Sukuk outstanding globally are issued from few well established markets namely Malaysia, Saudi Arabia, UAE, Indonesia and Bahrain while other countries like Turkey, Pakistan, Qatar, Oman and regions such as Africa in particular are likely to gradually increase their market share in the coming years.
The study identifies global Sukuk (with issue size of USD 100 million or above and with tenor of more than a year) set to mature during 2019 and 2020 will be around USD 73.34 billion. Considering investors’ appetite and Sukuk issuances in the pipeline, these maturing Sukuk will likely be refinanced with new Sukuk issuances as has been the case in recent years.
A trend seen in the research is the continued growth in Sukuk issuances from sovereign issuers while the quasi-sovereign, corporate and financial institution issuances also remained stable contributing to an optimistic outlook for the Sukuk market.
The report includes selected case studies from industry experts on landmark Sukuk issuances during the year, articles on specific topics and recent developments from market perspective ranging from evolution in Sukuk market, Sukuk ratings, SME, Sukuk issuance for positive social impact and use of Blockchain and FinTech in Sukuk.
“Sukuk’s commercial success should not lead us to ignore the underlying principles which are its distinguishing factors when compared to conventional bonds. Sukuk are an innovative way to raise financing in a Shari’ah compliant manner with link to the real economy,” said Khalid Hamad Abdulrahman Hamad, Chairman of IIFM. He added, “IIFM’s current initiatives on standardizing Sukuk Al Ijarah and Sukuk Al Mudarabah suite of documentation will address some of the critical issues which surfaced in recent cases of Sukuk defaults and restructuring.”
“Innovation is not only changing the dynamics of the Islamic finance industry but Sukuk market is also likely to benefit from technological advancements in the area of FinTech and blockchain technology,” said Ijlal Ahmed Alvi, Chief Executive of IIFM. He added, “It is pleasing to note that the new issuances also include environmentally friendly Green Sukuk, Socially Responsible Sukuk and blockchain related Sukuk.”
Mr. Alvi acknowledged the support of the IIFM Board of Directors and member institutions. He expressed his gratitude to the contributors of the report and in particular to DDCAP Group, Abu Dhabi Islamic Bank, Bank ABC Islamic and Labuan Financial Services Authority for their sponsorship support.
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About International Islamic Financial Market (IIFM)
IIFM is a standard-setting body focusing on standardization of Shari’ah-compliant financial contracts and product templates relating to the Islamic Financial Services Industry (IFSI).
IIFM which is based in Bahrain and hosted by the Central Bank of Bahrain (CBB), was established in 2002 under the Royal Decree No (23) Year 2002 of the Kingdom of Bahrain as a neutral and non-profit infrastructure development institution, by the collective efforts of the Islamic Development Bank, Autoriti Monetari Brunei Darussalam (formerly Ministry of Finance Brunei Darussalam), Bank Indonesia, Bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central Bank of Bahrain (formerly Bahrain Monetary Agency) and the Central Bank of Sudan.
Besides the founding members, IIFM is also supported by certain regulatory and government bodies such as Dubai International Financial Centre Authority, State Bank of Pakistan, The National Bank of Kazakhstan and by a number of international and regional financial institutions active in Islamic finance as well as other market players.
Information on IIFM and its activities is available on www.iifm.net
Media Contact:
Mr. Usman M. Naseer, Senior Officer, Business Development, IIFM
Office: +973 17 500161; e-mail: usman.naseer@iifm.net
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