Total value of sovereign sukuk grew 42% in 2018
GPI 2019 special report:
Islamic finance
Malaysia dominates sukuk markets
The OMFIF Islamic finance special report, contained in the Global Public Investor 2019, draws attention to the rapid growth of the global sukuk market. While corporate sukuk still make up the largest share of the market, the total value of outstanding sovereign sukuk increased by 42% between 2017-18; the previous year’s increase was 13%. However, while the market has experienced a sevenfold increase over the last decade, it remains a tiny fraction (0.4%) of the global fixed income market, underlining its massive growth potential.
Malaysia accounts for more than half of total sukuk outstanding. Islamic finance-related assets comprise 30% of total Malaysian bank assets and takaful (Islamic insurance products) make up 10% of the country’s insurance market. Saudi Arabia, the US and Indonesia follow, making up 37% of the market.
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