S&P: Emerging Headwinds May Cause Turbulence For Sukuk Issuance In 2015

Standard & Poor’s stated the global sukuk market is heading

into another solid year in 2015, though some emerging headwinds could

slow its progress compared to 2014. The report

published was today, “For Sukuk Issuance, Emerging Headwinds May Cause Turbulence

In 2015.”

Sukuk issuance reached $116.4 billion in 2014 compared with $111.3 billion in

2013, and S&P expect total issuance to cross the $100 billion mark again in

2015.

“Supporting sukuk issuance is the still-positive economic performance of core

markets such as nations in the Gulf Cooperation Council (GCC) and Malaysia,

the implementation of new regulatory requirements such as the Basel III

liquidity coverage ratio, and increasing interest in sukuk from countries that

have not yet tapped the sukuk market looking to diversify their investor

base,” said Standard & Poor’s credit analyst Mohamed Damak, who is also the

company’s global head for Islamic finance.

“At the same time,” Mr. Damak said, “we foresee some turbulence ahead that

could cause overall issuance volumes to be lower in 2015.”