Global Sukuk issuance reached US$22.2 billion (US$1=RM4.33), as at end-March, a marginal decrease from US$24.1bil recorded in the same period last year, with Malaysia maintaining its leadership by accounting for 38.5% of the total issuance, says RAM Ratings.
In a statement, the ratings agency said Indonesia was next (24.7%) followed by Qatar (9.9%) and the United Arab Emirates (9%).
RAM Ratings said outstanding global Sukuk summed up to US$346.7bil, as at end-March 2017, with Malaysia maintaining its leadership by commanding 48% of the amount.
It said during the first quarter this year, sovereign issuance boosted the global Sukuk market, with the bulk of the sovereign issuance stemming Indonesia (43.4%), Qatar (17.6%), Malaysia (15.4%) and Hong Kong (8%).
Head of Islamic Finance Ruslena Ramli said Bahrain and Qatar remained committed to continuously tap the Sukuk market.
“With the return of Saudi Arabia and the issuance of its US$9bil Sukuk on April 13 (its first US$-denominated Sukuk), we envisage other Gulf Cooperation Council nations would also consider to include Sukuk issuance as a debt management strategy,” she added.
On the domestic front, outstanding Malaysian Sukuk expanded 11.5%, year-on-year, to RM691.4bil, as at end-March 2017, from RM620.1bil recorded in the same period last year.
It said RM18.3bil in domestic Sukuk was issued in March, bringing year-to-date issuance value to RM37.6bil in the first quarter of this year, with the financial services sector the main driver of the domestic Sukuk market.—Bernama