Low oil prices drive sukuk markets

Global sukuk markets – Islamic bonds that comply with Sharia law – surged in the first half of 2017 to $48 billion, driven by governments covering budget deficits caused by weak oil prices

Global sukuk issuance (US$ billions)                   Mid-2014: Oil price plummets

150
120
90 
60
30

0 2006  07   08   09   10   11   12   13   14   15   16   17 Jan-Jun 

2009 onwards: Oil price surges following global financial crisis – sukuk issuances grow to peak in 2012
2013: London becomes first non-Muslim market to issue Islamic bonds
2015-16: Sukuk market falls as investors turn to conventional bond markets
2017: Saudi Arabia and Oman issue $11bn

25.5
46.0
20.6
28.0
45.1
85.1
131.2
119.7
118.8
66.1
74.8
48.0
 

Global sukuk markets (2016) Malaysia $34.7bn Market share 46.4%
Gulf Cooperation Council  $19.6bn 26.2%
Indonesia    $7.4bn  9.9%
Turkey   $4.1bn  5.5%
Others Including Senegal, Jordan, Ivory Coast, Kuwait, UK    $9bn 12.0%

Sources: Malaysia International Islamic Financial Centre, PwC, S&P Global © GRAPHIC NEWS