Global Sukuk Report 1Q 2015

Since reaching new heights over the past few years, global sukuk issuances for the 1Q15 declined to USD18.7bln from USD24.2bln in 4Q14. As the global sukuk market is closely tied to sentiment in the global economic and financial sector and, as most sukuk issuing countries are among the world’s leading oil producers, the decline in oil prices has been a notable factor effecting the sukuk market. Concerns on exchange rate volatility in emerging markets has been another key market driver in 1Q2015. However, this decline in sukuk issuances is likely to be temporary as growth drivers for the sukuk market remain intact, continuing to attract cross-border issuances, issuances from supra-national organisations, sovereign entities and corporate issuers tapping the market for capital expansion and working capital needs. Sukuk are expected to maintain its status as a viable and competitive source of funding.

Download