News

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: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

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.

Roundtables

MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.

SOUTH AFRICA ROUNDTABLE: Airline syndrome

Jun 13, 2018

Our panellists tell us that instead of launching competing national projects, African countries should work together for the sake of a bigger capital market. Chaired by George Mitton in Cape Town.