Global sukuk market to surpass US$100 billion in 2015

The Global Sukuk Market: 2015 Outlook, published in December 2014 by KFH Research, notes that the sukuk market is expected to continue to record issuances of more than US$100 billion in 2015, against an average of US$112 billion from 2011 to 2013, as acceptance continues to expand to more countries and sectors. 

Meanwhile, the value of outstanding sukuk is expected to grow at the average pace of the past five years, or around 16% per annum, to US$350 to 360 billion in 2015. In the first 11 months of 2014 (11M14), outstanding sukuk amounted to US$300 billion.

Overall, the global sukuk market recorded a solid performance in 11M14, supported by a recovering global economy, as well as benchmark-sized issuances from sovereign entities and Basel III sukuks by international finance institutions (IFIs). 

A few key trends emerged in 2014, particularly with regards to cross-border activity in the sukuk market: 

• Growing issuances in foreign currency sukuk, especially in US dollars 
• Malaysia solidifies its position as multi-currency sukuk issuance platform
• Cross-border listing of sukuk, and 
• Sukuk to enhance compliance with Basel III.