MIFC epicentre, the monthly MIFC newsletter brings you again interesting developments and exciting news in Islamic finance from all over the world. In this edition, the highlight is on the latest developments in global sukuk and Islamic funds, which include among others, green sukuk and SDG financing. The MIFC team complements these updates with an infographic on global sukuk and Islamic funds statistics for January to June 2019. In the first half of the year, Malaysia continues to stay ahead of the curve as the largest domicile for sukuk and Islamic funds. A strong issuance activity of global sukuk is observed during the period with total issuance of USD87.4 billion. The global sukuk market also continued its upward trajectory with global sukuk outstanding rising to a record USD466.8 billion. In the Islamic fund market, global Islamic asset under management (AuM) reached USD83.9 billion, an increase of USD6 billion compared to 1H2018 AuM. For detailed statistics, please download the infographic.
As at end-June 2019, global sukuk issuance had reached USD72.7 bil - exceeding the lower range of RAM Ratings’ full-year projection of USD70 bil-USD80 bil for 2019. As such, RAM has revised its full-year expectation to US80 bil–USD90 bil.
The Islamic Financial Services Board’s (IFSB) recently issued the seventh edition of its annual flagship publication: the Islamic Financial Services Industry (IFSI) Stability Report 2019. The Report examines the implications for the global IFSI of recent economic developments and changes in the global regulatory and supervisory frameworks.
The International Islamic Financial Market (IIFM) issued its 8th Edition of its annual Sukuk Report. The research report provides useful information on the global sukuk market, among others structure trends, key developments and prospects.
This report by Deloitte and ISRA provides an in depth analysis of the key driving factors of going green in these selected groups of counties and discusses the value proposition of Islamic financing strategy, as well as present anchor transactions and structures used in those countries.
The SDG financing gap for the world is estimated at around USD2.5 trillion annually. The gap for member countries of the Organisation of Islamic Cooperation (OIC) which overlap with IDB's, is around USD1 trillion a year.
The International Islamic Financial Market (IIFM) expects to finalise “Sukuk Al Ijarah” standard suite of documentation later this year. IIFM intends to also develop Sukuk Al Ijarah standard documentation covering securitisation market.
The UK wants to deepen its trade ties with Malaysia particularly in Islamic capital market, and in return, Malaysia can tap into a bigger pool of international investors when it leverages on London as a platform to issue debts.
The Securities Commission Malaysia says it believes there is a place for bonds and sukuk instruments to be part of a well-diversified retail investment portfolio despite traditionally being regarded as solely for the wholesale market. Since introduction of direct access to the fixed income instruments in 2012, retail investment had remained low.
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