IslamicFinance.de

According to a new report by the International Islamic Financial Market (IIFM), sukuk sales are set to continue to rise this year as issuers refinance debt and sovereigns continue to tap the Sharia-compliant fixed income markets. Maturing global sukuk, with a ticket size of US$100 million and with a tenor of more than a year, will stand at around $66bn during this year and 2018. About 86% of the $367bn outstanding sukuk are held by a small group of countries, including Malaysia, Saudi Arabia, the UAE and Indonesia.Other countries, like Turkey and Pakistan are forecast to boost their market share in the next few years. IIFM’s prediction of greater sukuk issuances is in line with forecasts from S&P Global Ratings. The rating agency expects sukuk sales this year to range between $75bn and $80bn, higher than its previous estimate of $60bn to $65bn. This year’s sales will be exceptional and are unlikely to be repeated next year, the agency said.