RAM Ratings announced that it maintains its projected global Sukuk issuance at $75 billion- $85 billion.
This is based on the growth trends in Sukuk issues from Malaysia, Indonesia as well as Bahrain, Kuwait and UAE in H1 2018.
Malaysia’s increased Sukuk issuance $19.4 billion at the of June 2018 compared to $18.6 billion, translating into a healthy 38.7 per cent market share of global Sukuk issuance. Additionally, Indonesia posted a 52.6 per cent increase to $6.6 billion compared to $4.3 billion end of June 2017.
Ruslena Ramli, Head of Islamic Finance at RAM, said, “Overall, the Sukuk market’s showing in 2018 will depend on the performance of the global economy and the state of investment recovery in key Islamic finance countries.”
As at end-June 2018, total global Sukuk issuance slipped by 5.2 per cent to $50.3 billion from $53.0 billion during the period under review. RAM Ratings said that this was largely attributed to declines in Sukuk issuance from Qatar -63.6 per cent, Saudi Arabia -37.9 per cent as well Turkey -18.0 per cent.
RAM said the GCC posted a contraction of 19.1 per cent to $21.3 billion against $26.3 billion at the end of June 2017.
However, the GCC’s sovereign Sukuk issues took up the lion’s share 67.6 per cent of its total Sukuk issuance, reversing earlier market trends.