Decline in GCC Corporate Sukuk Issuances

GCC Market Update by Rasameel Structured Finance

Sukuk issuances in September 2015 stood at USD610mn, declining from USD2.4bn registered in the earlier year during the same period. For YTD September 2015 sukuk issuance by value declined 33% y-o-y to USD13.6bn, mainly driven by a sharp decline in corporate issuances (-7%y-o-y, worthUSD8.6bn), sovereign (-33%y-o-y,USD4.0bn) and quasi sovereign issuances (-81%y-o-y, USD1.0bn). Corporates comprised 63% of the total issuance value for YTD September 2015, followed by sovereign at 29% and quasi-sovereign issuances at 8%.

Sukuk Issuance by Value, Number, and Type

Sukuk Issuance by Country –Number of Issuances

Bahrain was the largest issuer of sukuk by number of issuances (21) in GCC for YTD September 2015, followed by Saudi Arabia (10), UAE (6) and Qatar (1)Saudi Arabia accounted for the largest share of sukuk issued by value among GCC countries, with ten issuances totalling USD5.4bn for YTD September 2015, followed by UAE (six issuances; worth USD4.7bn), Bahrain (twenty-one issuances; worth USD3.0bn) and Qatar (one issuance; worth USD0.5bn).