The share of sukuk issuance in core markets such as the Gulf Cooperation Council (GCC) region, Malaysia, Indonesia, Turkey and Pakistan are expected to keep up their market share in 2017. New sukuk issuance from the core markets rose to $40 billion (Dh147 billion) in 2016 from about $32 billion a year earlier. This represented 28.5% of total bond and sukuk issuance in these markets in 2016, down marginally from 29% in 2015. Malaysian companies continue to be the most active corporate issuers. Several other key markets have introduced or updated sukuk laws in the past few years, including Saudi Arabia, Oman and Kuwait, which should gradually boost issuance. According to Faisal Hasan, Head of Investment Research at Kamco, the outlook for sukuk issuance in 2017 remains positive as GCC economies are expected to return to issuing sukuks to fund their deficits. Analysts say GCC corporates that tap capital markets are more likely to issue sukuk or a mixture of both, rather than only bonds to attract a wider local and regional investor base.
Etqaan Shariah Capital Partners is closing its first Etqaan Shariah Fund. TNI and KAMCO are managing the Fund with $20m, and will persist to fundraise in regional and international markets, subject to country specific regulatory approvals.
The Fund will invest between $20m and $40m in six to eight portfolio companies in the Middle East and North Africa (MENA) region, and will look to primarily take majority stakes in leading regional businesses.
Legal counsel was given by Dewey and LeBoeuf LLP during the formation of the Fund. Fund administrator will be Deutsche Bank (Cayman) Limited.