A record $145.70 billion worth of Sukuk was issued in 2019, an increase of around 18.32% in Sukuk issuances as compared to 2018, said the 9th edition of the annual Sukuk Report released by 

the International Islamic Financial Market (IIFM).  

 

The report identifies that as of December 2019, around 94% of the $551.44 billion sukuk outstanding globally were issued from well established markets, namely Malaysia, Saudi Arabia, Indonesia, United Arab Emirates, Turkey and Bahrain while other countries like Pakistan, Qatar, Oman and regions such as Africa, in particular, are gradually increasing their market share.

 

Sukuks to mature during 2020 and 2021 will be around $70.82 billion, the report said.

 

Due to the current tough economic conditions globally, caused by the Covid-19 pandemic, maturing sukuks, particularly from sovereign issuers, are likely to be refinanced with new sukuk issuances while corporate and financial institutions may delay issuing new sukuk, it said.

 

“Sukuk’s commercial success should not lead us to ignore the underlying principles which are its distinguishing factors when compared to conventional bonds. Sukuk are an innovative way to raise financing in a Shari’ah compliant manner with link to the real economy,” said Khalid Hamad Al-Hamad, Chairman of IIFM. 

 

“At the time of publication of the report, the global financial markets are facing a great deal of uncertainty caused by the Covid-19 pandemic which may momentarily impact the sukuk primary market. However, given the unique features of sukuk, the environmental, social and educational financing requirements present a huge potential to be realized in the medium term,” said Ijlal Ahmed Alvi, Chief Executive of IIFM. 

 

The report was launched at a webinar where an international panel of experts representing IIFM, International Islamic Liquidity Management Corporation (IILM), Bank ABC Islamic, Kuwait Finance House (Bahrain), Standard Chartered Bank, National Commercial Bank, DDCAP Limited and Clifford Chance LLP spoke on sukuk issuances in the time of Covid-19, trends and expectations, buy-side and sell-side perspectives, opportunities in environment friendly green sukuk and socially responsible SRI Sukuk, use of securitization in structuring sukuk and IIFM’s Sukuk Al Ijarah and Sukuk Al Mudarabah standard documentation initiatives. 

 

The research report provides comprehensive information on global sukuk issuances, types of issuers, sukuk structures, case studies on select landmark issuances, articles on sukuk market developments and prospects as well as country focused reports on IIFM founding member countries and major sukuk issuing jurisdictions.  

 

The webinar launch event was attended by more than 150 participants from financial institutions, multilateral institutions, regulatory bodies, stock exchanges, law firms, accounting & business advisory firms and educational institutions from around 20 countries. –TradeArabia News Service