Outside Malaysia, sukuk issuance disappoints

Islamic_bankingMalaysia has retained its status as the world’s largest issuer of sukuk in a year when entities in other nations saw weaker-than-expected volumes. From 2001 until last year, Malaysia has accounted for $612 billion, nearly 63%, of all sukuk issuance, according to the International Islamic Financial Market, a standard-setting body. Last year, sukuk worth $117 billion were issued around the world, an increase of a third compared with 2016, according to the organisation’s 2018 Annual Sukuk Report. The total lags below a high of $138 billion achieved in 2012. “Barring Malaysia, the corporate sukuk issuances in most of the established jurisdictions is below expectation and challenges including legal and policy issues must be resolved to encourage more sukuk issuances by corporate entities,” said Ijlal Ahmed Alvi, chief executive of the International Islamic Financial Market. Sovereign issuers account for the majority (55%) of the sum raised by sukuk issues since 2001. In the period, Saudi Arabia has accounted for about 10% of overall sukuk issuance, followed by the UAE with 7% and Indonesia with 6%. ©2018 funds global asia

Executive Interviews

Interview: Money needs a place to go

Mar 11, 2019

Peng Fei, chief investment officer at Wanwei Asset Management, tells Romil Patel about allocating capital across risk factors when asset performance is uncertain and unpredictable.

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...


Singapore roundtable: A money magnet

Mar 11, 2019

Our panel discussed why the Singapore Variable Capital Company makes them bullish, what gives the onshore jurisdiction an offshore feel and “blood on the streets” from China’s slowdown. Chaired by Romil Patel in Singapore.


Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.