Sukuk issuance to hit $95 billion this year

Graph_up1Sovereign borrowers are driving a resurgence in Islamic finance with the total value of sukuk issued in 2017 on track to reach $95 billion. The prediction, from ratings agency Moody's, indicates growth of 12% compared with the previous year's total issuance of $85 billion. “Sovereigns have underpinned a recovery in the global sukuk market this year,” said Christian de Guzman, a senior credit officer at the agency. “We expect sovereign sukuk issuance volumes will continue to grow in 2018 as governments look to diversify their financing mix and satisfy the liquidity needs of Islamic retail banks.” According to Moody's predictions, sovereigns will issue about $148 billion in sukuk in 2018, leading to a significant expansion of the market. Although Malaysia has historically been the largest issuer of sukuk, Gulf countries led by Saudi Arabia are taking a larger share of the market as their governments raise money to offset the effects of low oil prices. ©2017 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.


Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.