1. Prospect andChallenges For Sukuk g ISMAIL E DADABHOY MUSCAT,
MAY 2012
2. Sukuk and the Way Forward1. GLOBAL SUKUK MARKET STATS
OVERVIEW & TRENDS2. WHERE TO EXPECT NEW GROWTH3. ADDRESSING
SOME OF THE CHALLENGES4. IMPROVING COST & TIME
EFFECTIVENESS
4. Global Sukuk Issuances By Currency (Jan 2001 - 1Q 2012)
Malaysian Ringgit Pakistani Rupees (PKR) (MYR) USD 5,181 Million
USD 205,509 Million , 1.53% 60.87% Qatari Riyals (QAR) USD 9,548
Million 2.83% Saudi Riyals (SAR) USD 16,592 Million 4.91% 4 91%
Sudanese Pounds (SDG) USD 13,214 Million 3.91%Kuwaiti Dinars (KWD)
USD 329 Million Singapore Dollars (SGD) 0.10% USD 1,295 Million
Jordanian Dinars (JOD) 0.38% USD 119 Million United States 0.04%
Dollars (USD) Iranian Riyals (IRR) USD 58,775 Million USD 198
Million 17.41% 17 41% 0.06% Yemeni Riyals (YER)Indonesian Rupiah
(IDR) Emirati Dirham (AED) USD 18.7 Million British Pounds (GBP)
USD 8,185 Million USD 10,298 Million 0.01% USD 261 Million 2.42%
3.05% 0.08% Bahraini Dinars (BHD) Chinese Yuan Renminbi Bruneian
Dollars (BND) USD 4,772 Million Gambian Dalasi (GMD) Euro EUR (CNY)
USD 2 965 Million 2,965 1.41% USD 49 Million USD 221 Million USD 78
Million 0.88% 0.01% 0.07% 0.02%
SOURCE:IIFMSUKUKISSUANCEDATABASE
5. Global Sukuk Issuances By Country (Jan 2001 - 1Q 2012)
Malaysia PakistanUSD 213,250 Million USD 5,781 Million 63.16% 63
16% 1.71% 1 71% Qatar USD 11,783 Million 3.49% Saudi Arabia USD
24,532 Million 7.27% Kuwait Singapore USD 2,355 Million USD 192
Million 0.70% 0.06% Sudan Jordan USD 13,344 Million USD 119 Million
UAE 3.95% 0.04% Turkey Japan USD 37,908 Million USD 450 MillionUSD
100 Million 11.23% 0.13% Iran 0.03% 0 03% USD 198 Million UK Yemen
0.06% USD 271 Million USD 18.7 Million Gambia 0.01% 0.08% Indonesia
USA USD 49 Million USD 11,948 Million Germany USD 767 Million 0.01%
Bahrain 3.54% USD 123 Million 0.23% Brunei DarussalamUSD 11,455
Million 0.04% USD 2,965 Million 3.39% 0.88%
SOURCE:IIFMSUKUKISSUANCEDATABASE
6. Global Sukuk Issuances by Maturities (Jan 2001 - 1Q 2012) 2
to 5 years USD 105,289 Million 31.19% 1 Year or Less 6 to 10
yearsUSD 109,410 Million USD 66,382 Million 32.41% 19.66% 11 to 15
years y 41 to 50 years USD 20,415 Million USD 586 Million 6.05%
0.17% 16 to 20 years USD 17,505 Million 31 to 40 years 26 to 30
years 21 to 25 years 5.19% USD 5,822 Million USD 5,639 Million USD
6,560 Million 1.72% 1.94% 1 94% 1.67% 1 67%
SOURCE:IIFMSUKUKISSUANCEDATABASE
7. Breakdown of Total Global Sukuk Issuance by Issuer Status
Sovereign, Quasi Sovereign & Corporate Issues by Volume All
Currencies (Jan 2001 Dec 2011) DomesticSukuk InternationalSukuk
Corporate USD37,125 Sovereign Corporate MillionUSD103,241
USD108,322 65% Million Million 47% 50% Sovereign USD13,985 USD 13
985 Million Quasi Quasi 24% Sovereign Sovereign USD7,313 USD6,078
Million Million 3% 11% SOURCE:IIFMSUKUKISSUANCEDATABASE
8. Structural Breakdown of Domestic Sukuk Issuance (% by
Volume)Sovereign, Quasi Sovereign & Corporate Issues All
Currencies (Jan 2001 Dec 2011) Murabaha USD 83,456 Mudaraba d b 38%
USD9,123 4% Istisnaa USD3,469 2% Musharaka Ijarah USD44,413
USD49,613 20% 23% Exchangeable Exchangeable Salam Salam USD408
USD1,683 0% 1% Investment/AlIstithmar USD8,978 Wakalah 4% USD2,125
, 1% BaiAlTawarruq Principle BaiBithaman Ajil Hybrid
BaiAlInahPrinciple USD49 USD11,639 USD2,283 USD1,637 0% 5% 1% 1%
SOURCE:IIFMSUKUKISSUANCEDATABASE
9. Structural Breakdown of International Sukuk Issuance (% by
Volume) Sovereign, Quasi Sovereign & Corporate Issues All
Currencies (Jan 2001 Dec 2011) Ijarah USD25,168 , 44% Exchangeable
Mudaraba USD6,190 USD4,725 11% 8% Murabaha Hybrid USD1,243 USD2,854
2% 5% Musharaka USD9,364 16% AlWakalah Bel Wakalah Salam Istithmar
, USD4,454 USD1,990 USD 1,990 USD1,201 8% 4% 2%
SOURCE:IIFMSUKUKISSUANCEDATABASE
10. Where to expect New Growth New Entrants , Africa,
Indonesia, Oman Saudi Africa Indonesia Oman, Soviet Block , North
America and Australasia Takaful & Pension Investors Government
Initiatives Local Currencies to Expand Yield Curve Reserve Benefit
Collateralised Funding Repo Alternative Innovation & Expansion
of Asset Type ( Local Currency Equity Linked Real Asset Backed
Sukuk ) Linked,
11. Challenges Limited New Supply . Lack of Active Secondary
Market Slow Fixed Income Mutual Funds Entrance Limited Private
& Corporate F.I Investors Marketing to Retail Diversification
Extra Steps and Approvals Processes Standardise Structure
Template
12. Improve Cost & Time Effectiveness Standardise Proven
& Acceptable Structures Standardise Documentation Need Approval
from own Sharia Board? Empowering Traders / Investment Department
from Management Committee