KUALA LUMPUR – Malaysia continues to lead global sukuk markets, with a market share of 39.2% last year, despite the impact of the Covid-19 pandemic on global economy and economic sentiment.
RAM Rating Services Bhd revealed that global sukuk issuance rose 16.8% to US$152.6 billion (RM632 billion) last year compared with US$130.6 billion in 2019.
The next biggest sukuk markets were Saudi Arabia (20.4%) and Indonesia (17.5%).
“Collectively, these three markets contributed 77.1% of total global sukuk issuance (last year),” RAM Ratings said in its latest Sukuk Snapshot report.
It added that the contagion impact of Covid-19 saw steady issuances from sovereigns last year to finance stimulus packages in support of the pandemic-ravaged economies.
It attributed the local economies growth to the supportive monetary policy and strong government spending.
“As a result, sovereign issuances increased 9.2% year-on-year to US$87.5 billion in 2020 versus US$80.1 billion in 2019.”
Three sovereign heavyweights – Indonesia with 29.9% market share (US$26.2 billion), Malaysia with 28.2% (US$24.6 billion) and Saudi Arabia with 20.7% (US$18.1 billion) – accounted for more than two-thirds of global sovereign issuance last year.
RAM’s Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. The publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments. – Bernama, April 1, 2021
