Islamic Sukuk Market Growth of 54% During 2012

A report issued by "BAYTK", a research firm, a subsidiary of Kuwait Finance House (KFH) that the total sukuk issuance at the end of 2012 reached 131 billion dollars, up 54 percent from 2011. And record the Islamic Sukuk market grew in 2011 by 45% the size of $ 180 billion.

According to "Ernst & Young" Consulting that global demand for Islamic bonds (Sukuk) is currently estimated at $ 300 billion, but it is expected to rise by 2017 to $ 900 billion.
sukuk islamic

But the director of the Islamic financial services in the "Ernst & Young" pointed Nazem, asserts that "one of the major challenges facing the Sukuk market is supply constraints, while continuing high demand."

A report by Kuwait Finance House (KFH) that there is great potential for growth wealth management industry Islamic in the coming years in light of the increasing number of high net worth individuals Islamic and the continuing growth in the volume of Islamic assets and increasing demand for services and products compliant with Islamic law in the world markets.

And continued to dominate the Malaysian market and currency versions sovereign issues continued excellence, where versions governmental organizations and the bulk of the sovereign versions by 70 percent during the month of December to $ 5.7 billion. Malaysia dominated versions in terms of market size versions, where it formed the Malaysian versions of instruments during the month of December 90.2 percent of the market share, while there was a noticeable absence of Indonesian instruments and UAE.

And, consequently, the ranking of countries in terms of release: Malaysia - Saudi Arabia - United Arab Emirates - Indonesia, and most versions of instruments BSF amount $ 506 million, and instruments FWU Group, the largest issuance of a European ever Islamic Sukuk for companies and the first version of the instruments played by a German company $ 55 million.

For the primary market in 2012, the share of Malaysia where 74 percent of the total releases, followed by Saudi Arabia (8 percent) and the UAE (4.7 per cent) and Indonesia (4.6 percent).

The versions governmental organizations and the bulk of the sovereign versions with 70.1 percent during the month of December, while there was a large number of versions by the financial services sector.

The share of government institutions 61.8 percent of the initial versions of the sukuk market in 2012 with the versions of the services sector by 11.4 percent of the primary market, while the service sector accounted for 13 percent of total releases of the same year.

The analysis issued by "JP Morgan" to that next year will be a record in terms of sukuk issuance, at the level of the world, where it plans several institutions and international companies issuing more instruments.

While The World Conference of Islamic banks on the need for the Islamic finance sector to strengthen the global presence, due to strong demand for its products with an enormous liquidity in Islamic banks, with assets exceeding Islamic banks $ 1.3 trillion barrier end of last year.

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