KUALA LUMPUR (April 1): Malaysia continues to dominate global sukuk markets in 2020, with a market share of 39.2%, despite the impact of the pandemic on the global economy and economic sentiment.
RAM Rating Services Bhd (RAM Ratings) revealed that global sukuk issuance rose 16.8% to US$152.6 billion (US$1=RM4.14) 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 markets contributed 77.1% of total global sukuk issuance,” it said in its latest Sukuk Snapshot report.
It said the contagion impact of Covid-19 saw steady issuances from sovereigns in 2020 to finance stimulus packages, in support of the pandemic-ravaged economies.
RAM Ratings 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 (y-o-y) to US$87.5 billion in 2020, versus US$80.1 billion in 2019.
Three sovereign heavyweights – Indonesia with its 29.9% market share (US$26.2 billion), Malaysia with 28.2% (US$2.6 billion) and Saudi Arabia with 20.7% (US$18.1 billion) accounted for more than two-thirds of global sovereign issuance in 2020.
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.
