Sunday, 14 February 2016

Malaysia retains lead in global sukuk share in 2015

Malaysia has retained its leading position as a sukuk hub in 2015, accounting for 53% of global issuance at the end of the year, says RAM Ratings

“This is a strong finish for Malaysia, which has had to contend with the devaluation of the ringgit, slower sukuk issuance and new issuers from other countries,” notes Ruslena Ramli, RAM Ratings’ Head of Islamic Finance. 

Although the performance pales in comparison to the country’s 69% of share of global sukuk as at end-2014, the ringgit remained the currency of choice (39%) for sukuk issuance, followed by the US dollar (32%) and the Indonesian rupiah (9%).

On the domestic front, the value of outstanding sukuk had increased month on month to RM608.5 billion as at end-2015 (end-November 2015: RM595.3 billion), accounting for 54% of the market’s outstanding debt securities. RAM Ratings’ latest edition of the Sukuk Snapshot also shows that sukuk constituted 45% of the RM254.2 billion of domestically issued debt securities in 2015.

The Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. This monthly publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. 

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