Industry Body Releases Fifth Sukuk Report

Bahrain based Islamic Finance Industry Body, the International Islamic Financial Market (IIFM) has released the fifth edition of its highly respected Sukuk Report.

The report analyses the growth and the development of international and domestic Sukuk issuances in recent years globally and shed light on the different Sukuk structures widely used in various jurisdictions active in issuing Sukuk for the purpose of achieving a deeper understanding of the mechanism of this most popular financial instruments in the Islamic Capital and Money Market.

The demand for Sukuk from the Islamic jurisdictions in the GCC countries, including Bahrain, UAE, Saudi Arabia, Qatar as well as Malaysia, Indonesia, Turkey, Pakistan, Sudan, Brunei, Islamic Development Bank, remain the main force in maintaining the Sukuk appeal and growth. Further impetus to international Sukuk market is provided by the recent entry of Oman, United Kingdom, Luxembourg, Hong Kong, South Africa, several West African countries and the World Bank/IMF related entities.

The report concludes that Sukuk market growth particularly domestic short term Sukuk has dropped in 2015, due to Bank Negara Malaysia strategic decision to discontinue issuance of short term investment Sukuk, but overall trend remains encouraging. The entry of a number of new jurisdictions together with expansion of Sukuk issuances in established Sukuk countries is indication that Sukuk market will maintain its appeal and growth trajectory despite challenging global financial environment.

About IIFM

IIFM is a standard-setting organization for the Islamic Financial Services Industry focusing on standardization of Islamic financial contracts and product templates relating to the Capital & Money Market, Corporate Finance and Trade Finance segments of the industry.

IIFM plays its role in market unification by developing best practices at the global level and achieving Shari’ah harmonization through its eff orts for creation of a robust, transparent and efficient Islamic finance industry. IIFM also contributes in the development of the industry by organizing a number of industry awareness seminars and workshops.

Download Report

 International Islamic Financial Market (IIFM) Sukuk Report, 5th Edition published March 2016 (12.2 MB)