The sukuk wave ‘is going to get bigger’
Sukuk continues to attract interest among investors. Until now, $17.4bn have been raised in the form of 45 issues. This may look little compared with conventional credit markets. However, in Islamic banking, it is the highest issuance in the first half of the year since 2008. The sukuk wave is expected to become even bigger. Causes therefore are that the majority of sukuk investors are Islamic investors as well as that liquidity in the Middle East is driven by oil prices to a high extent. The situation is different in Malaysia, since the country is not an oil producer. The solution there is shaping the supply side to boost the market by regulation.
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