global sukuk market trends & developments · 2019-10-13 · 1 global sukuk market trends &...

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Global Sukuk Market Trends & Developments

IIFM Awareness Seminar on Islamic Finance

Wednesday, 11 September 2019

Muscat Hall, Bank Muscat Head Office, Muscat, Sultanate of Oman

Ijlal Ahmed Alvi

Chief Executive Officer, IIFM

Sukuk Issuances

Global Sukuk Market Trends and Developments, IIFM Awareness Seminar on Islamic Finance, 11 September 2019, Muscat

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Total GLOBAL Sukuk Issuances (Jan 2001 - Dec 2018) - All Tenors, All Currencies (in USD Millions)

Source: IIFM Sukuk Database

Global Sukuk Market Trends and Developments, IIFM Awareness Seminar on Islamic Finance, 11 September 2019, Muscat 1

Total INTERNATIONAL Sukuk Issuances (Jan 2001 - Dec 2018) - All Tenors, All Currencies (in USD Millions)



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Total DOMESTIC Sukuk Issuances (Jan 2001 - Dec 2018) - All Tenors, All Currencies (in USD Millions)



Breakdown by Issuer Status


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Total GLOBAL SOVEREIGN Sukuk Issuances (Jan 2001-Dec 2018) - All Tenors, All Currencies (in USD Millions)



Total GLOBAL CORPORATE Sukuk Issuances (Jan 2001-Dec 2018) - All Tenors, All Currencies (in USD Millions)



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Total GLOBAL QUASI-SOVEREIGN Sukuk Issuances (Jan 2001-Dec 2018)

- All Tenors, All Currencies (in USD Millions)



Total GLOBAL FINANCIAL INSTITUTION Sukuk Issuances (Jan2001-Dec 2018)

- All Tenors, All Currencies (in USD Millions)



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DOMESTIC Sukuk Issuances by Issuer Status (Jan2010-Dec2016) - All Tenors, All Currencies (in USD Millions)




DOMESTIC Sukuk Issuances by Issuer Status (Jan2017-Dec2017) - All Tenors, All Currencies (in USD Millions) continued


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DOMESTIC Sukuk Issuances by Issuer Status (Jan2018-Dec2018) - All Tenors, All Currencies (in USD Millions) continued



INTERNATIONAL Sukuk Issuances by Issuer Status (Jan2010-Dec2016) - All Tenors, All Currencies (in USD Millions)



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INTERNATIONAL Sukuk Issuances by Issuer Status (Jan2017-Dec2017) - All Tenors, All Currencies (in USD Millions) continued



INTERNATIONAL Sukuk Issuances by Issuer Status (Jan2018-Dec2018) - All Tenors, All Currencies (in USD Millions) continued



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Country wise Breakdown


Regional Break-up of GLOBAL Sukuk Issuances (Jan2001-Dec2018)



ASIA & FAR EAST Number of Issues Amount USD Millions % of Total Value

Bangladesh 4 37 0.003%

Brunei Darussalam 161 10,257 0.003%

China 1 97 0.01%

Hong Kong 5 3,196 0.29%

Indonesia 406 79,492 7.22%

Japan 3 190 0.02%

Malaysia 6,355 670,121 60.84%

Maldives 2 10 0.001%

Pakistan 89 16,123 1.46%

Singapore 16 1,498 0.14%

Sri Lanka 2 5 0.00%

Total 7,044 781,026 69.98%

GCC & MIDDLE EAST Number of Issues Amount USD Millions % of Total Value

Bahrain 415 30,883 2.80%

Jordan 4 483 0.04%

Kuwait 18 3,658 0.33%

Oman 10 5,290 0.48%

Qatar 40 28,661 2.60%

Saudi Arabia 169 117,816 10.70%

United Arab Emirates 124 79,378 7.21%

Yemen 2 253 0.02%

Total 782 266,422 24.19%

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Regional Break-up of GLOBAL Sukuk Issuances (Jan2001-Dec2018)continued



AFRICA Number of Issues Amount USD Millions % of Total Value

Gambia 321 383 0.03%

Ivory Coast 2 460 0.04%

Nigeria 5 864 0.08%

Mali 1 285 0.03%

Morocco 1 105 0.01%

South Africa 1 500 0.05%

Senegal 2 445 0.04%

Sudan 36 19,646 1.78%

Togo 1 245 0.02%

Total 370 22,932 2.08%

EUROPE & OTHERS Number of Issues Amount USD Millions % of Total Value

France 1 1 0.0001%

Germany 3 206 0.02%

Luxembourg 3 280 0.03%

Kazakhstan 1 77 0.01%

Turkey 372 27,472 2.49%

United Kingdom 10 1,719 0.16%

USA 5 1,367 0.12%

Total 395 31,122 2.49%

Grand Total 8,591 1,101,502 100%

GLOBAL Sukuk Issuances by Currency (Jan2001- Dec2018) - All Tenors, All Currencies (in USD Millions)



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Regional Break-up of INTERNATIONAL Sukuk Issuances (Jan2018-Dec2018)




Indonesia 3 3,100 9.40%

Malaysia 17 9,181 27.83%

Total 20 12,281 37.23%


Bahrain 1 1,000 3.03%

Oman 1 1,500 4.55%

Qatar 4 410 1.24%

Saudi Arabia 9 8,359 25.34%

United Arab Emirates 15 8,260 25.04%

Total 30 19,529 59.20%


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Total - - -

Europe & OTHERS Number of Issues Amount USD Millions % of Total Value

Turkey 2 827 2.51%

United Kingdom 1 351 1.06%

Total 3 1,178 3.57%

Grand Total 53 32,988 100%

Regional Break-up of DOMESTIC Sukuk Issuances (Jan2018-Dec2018)




Brunei Darussalam 12 675 0.75%

Indonesia 159 13,576 15.06%

Malaysia 627 48,636 53.94%

Maldives 1 6 0.01%

Pakistan 6 192 0.21%

Sri Lanka 1 2 0.00%

Total 806 63,087 69.97%


Bahrain 22 2,163 2.40%

Jordan 1 212 0.23%

Oman 1 130 0.14%

Qatar 6 2,399 2.66%

Saudi Arabia 38 14,243 15.80%

United Arab Emirates 1 73 0.08%

Total 69 19,219 21.32%


Gambia 111 247 0.27%

Nigeria 1 270 0.30%

Mali 1 285 0.32%

Morocco 1 105 0.12%

Sudan 6 87 0.10%

Total 120 994 1.10%

Europe & OTHERS Number of Issues Amount USD Millions % of Total Value

Turkey 187 6,862 7.61%

Total 187 6,862 7.61%

Grand Total 1,182 90,162 100%

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Breakdown by Structure


INTERNATIONAL Sukuk Issuances by Structure (Jan2010-Dec2016) - All Tenors, All Currencies (in USD Millions)



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Structural Break-up of INTERNATIONAL Sukuk Issuances (Jan2017-Dec2017) - All Tenors, All Currencies (in USD Millions) continued



Structural Break-up of INTERNATIONAL Sukuk Issuances (Jan2018-Dec2018) - All Tenors, All Currencies (in USD Millions) continued



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Structural Break-up of DOMESTIC Sukuk Issuances (Jan2010-Dec2016) - All Tenors, All Currencies (in USD Millions)





Structural Break-up of DOMESTIC Sukuk Issuances (Jan2017-Dec2017) - All Tenors, All Currencies (in USD Millions) continued

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Structural Break-up of DOMESTIC Sukuk Issuances (Jan2018-Dec2018) - All Tenors, All Currencies (in USD Millions) continued

Sukuk Outstanding


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Total GLOBAL Sukuk Outstanding as of 31st Dec 2018



Total GLOBAL Sukuk Outstanding by Issuer Status as of 31st Dec 2018



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Total DOMESTIC Sukuk Outstanding as of 31st Dec 2018



Total DOMESTIC Sukuk Outstanding by Issuer Status as of 31st Dec 2018



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Total INTERNATIONAL Sukuk Outstanding as of 31st Dec 2018



Total INTERNATIONAL Sukuk Outstanding by Issuer Status as of 31st Dec 2018



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Challenges In Sukuk Market


Challenges in Sukuk Market

1) Limited availability of tangible assets leads to over reliance on certain Sukuk structures

2) Asset title transfer law particularly for sovereign assets

3) Investor’s preference and risk appetite tilted towards balance-sheet risk rather than direct risk on a tangible asset

4) Legal Framework & enhancement of Shari’ah monitoring (Dana Gas Sukuk legal case)

5) Global Corporate Sukuk issuances below par contribution Ex. Malaysia

6) Equity linked Sukuk issuances to be encouraged i.e Exchangeable Sukuk


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Use of Portfolio of Sukuk/Islamic Securities

➢ IIFM Unrestricted Investment Wakalah Standard

Use of Sukuk/Islamic Securities as Collateral

➢ IIFM Collateralized Murabahah Standard

Currency and Rate of Return Risk Mitigation

➢ IIFM Hedging Standards

Established conventional bond issuance process vs Sukuk issuance process (structuring, documentation, market guidelines)

➢ IIFM Sukuk Al Ijarah & Sukuk Al Mudarabah Standard Documentation (being developed)

IIFM Standards to Facilitate Sukuk Market


ShukranWassalamu ‘Alaikum

International Islamic Financial Market (IIFM)Office No. 72, 7th Floor, Zamil Tower, Government Avenue, P.O. Box: 11454, Manama, Kingdom of BahrainTel: +973 17500161 , Fax: +973 17500171, Email: [email protected], Website: www.iifm.net

Disclaimer: The information herein has been obtained from sources believed to be reliable but cannot be guaranteed. The views or opinions expressed are subjected to change at any time. Neither the information nor any opinion expressed can be construed as a solicitation for the purchase or sale of any securities. International Islamic Financial Market disclaims liability in this respect.

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global sukuk market trends & developments · 2019-10-13 · 1 global sukuk market trends &...

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