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: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.