Kuala Lumpur, 21 Dec 2021 – INCEIF and RAM Ratings are pleased to release our first joint publication titled Sukuk Market SNAPSHOT. This quarterly market report marks another collaboration by the two organisations which leveraged on their respective Islamic finance expertise. Extending from RAM’s previous Sukuk Snapshot, the rebranded Sukuk Market SNAPSHOT zooms into unique and noteworthy Sukuk structures, highlighting financial innovation and advances in Sukuk structuring.
For the first nine months of 2021, the global sukuk markets continued to achieve new heights, reaching USD655.8 billion in outstanding sukuk, even as the ramifications of the 2019 healthcare crisis that sparked worldwide contagion continue to influence the shape of future markets. Sovereign Sukuk issuances, which have traditionally been the mainstay of Sukuk markets, continue to tap into the Sukuk markets to help support economic recovery and to diversify funding.
The recovery in global oil prices, the ramping up of vaccinations and gradual border and economic re-opening suggests that sovereign Sukuk activity – especially from the GCC countries – is anticipated to slow down in the 4Q of 2021 and as we enter 2022. Until solutions are resolved to address AAOFI’s Standard 59 in some GCC jurisdictions, the sukuk pipeline in the affected GCC countries may be dampened for a while yet. YTD September 2021, core market leaders such as Malaysia, Indonesia and Saudi Arabia led the sovereign Sukuk issuances, making up close to 80% of total sovereign Sukuk.
Corporate Sukuk remains a less active market in most Sukuk markets, except in Malaysia where corporate Sukuk made up a sizeable 37.1% as at end-September 2021. That said, after Saudi Aramco’s landmark corporate Sukuk fund raising in June 2021, the 3Q of this year still observed several notables, including Bangladesh Export Import Company Limited’s USD0.36 billion Green Sukuk – the subject of this quarter’s Sukuk Structure Focus, and a return of domestic corporate Sukuk issuances in Qatar and Egypt.
The Sukuk Market SNAPSHOT is available through premium subscription on the I-FIKR App.
Download the I-FIKR App at:
App Store – https://apps.apple.com/app/id1547221392