As per the latest report compiled from the Bahrain-based International Islamic Financial Market (IIFM), the Global Sukuk Issuances have witnessed an 18 percent upsurge during 2019 reaching a record $145.70 Billion (Dh535bn) with ample support from the governments as well as the private enterprises utilizing the Islamic Finance Instruments for their project funding.
The report further emphasized that “Since its initial launch in 2001, this figure is the highest recorded value of the yearly Sukuk Issuance.” The report also stated that during the 2019, this steady growth and issuance volume was primarily as a result of the sovereign sukuk issuances from Asia, GCC, Africa and certain other authorities. Malaysia, continued their dominance while nations like Indonesia, the UAE, Saudi Arabia and as well as Turkey registered a huge surge in Sukuk issuance with better volume.”
The report as well as stated that “the overall Sukuk issuances from Sovereign, quasi Sovereign and as well as the corporates and financial institutions mainly from GCC, Indonesia and Malaysia have contributed to an improvement in the volumes.”
The Banking Sector players like The Central Bank of Bahrain, with support of governments in Sharjah, Oman as well as Saudi Arabia too issued sukuk the previous year.
Total worldwide sukuk issuances stood at $38.47bn into 2019, above 16.6 per cent in contrast in accordance with the preceding year or easiest due to the fact that the beginning of sukuk want among 2001. Domestic sukuk issuances also roseate 18.9 care of cent in conformity with $107.26bn, together with the largest chunk regarding this extend presence beside Malaysia which issued sukuk price $54bn, followed by means of Saudi Arabia at $18.90bn then Indonesia at $17.30bn.
The report also showed that the total net worth about long-term sukuk into 2019 stood at $76.45 billion while short-term sukuk issuances reached $30.77 billion.
Abu Dhabi’s Aldar Properties, Saudi Arabia’s Almarai Company, Dubai’s DP World, Emaar Properties or Dubai Islamic Bank issued sukuk in accordance to raise the fund previous year. Aldar issued a $500 Million sukuk in imitation of refinance its due whilst DP World issued a $1bn sukuk.
The report additionally stated the international monetary markets are going through a vast deal of doubt fit in accordance with the current health-virus-economic crisis which may additionally momentarily have an impact on the sukuk issuances.
“The US Dollar continues in conformity with be the favoured currency because of culture global traders around the globe. Local foreign money sukuk intention strengthens into the presence years as like extra OIC international locations advance their home sukuk markets. This trend is taking a perfect shape in nations like Indonesia, Turkey, Pakistan, Africa and the GCC countries issuing native forex sukuk.”
Ijlal Ahmed Alvi, chief executive on IIFM, stated that “However, given the special applications about sukuk, the environmental, social as well as the educational financing requirements current a significant potential to keep realised between the medium-term.”