The recovery in the global economy has encouraged a rebound in the sukuk market. 2010 has been a good year with total global issuance reaching USD30bn representing an increase of approximately 20% from the previous year and a two-fold increase from the lows of USD15bn in 2008. Of that amount, some USD8.6bn sukuk programme was listed on Bursa Malaysia, accounting for almost one-third of total global issue.
Amongst the notable listings include Sime Darby Berhad's RM4.5bn Musyarakah sukuk, the Government of Malaysia's USD1.25bn Global Sukuk Al-Ijarah and the Islamic Development Bank's USD3.5bn sukuk. The total value of sukuk programme listed on Bursa Malaysia as at 31 December 2010 stands at approximately USD27.7bn, thus retaining the exchange's position as the leading sukuk listing destination.
Raja Teh Maimunah, Global Head of Islamic markets at Bursa Malaysia says that "general consensus amongst industry players is that global sukuk issuances for 2011 will surpass the record high of USD34.2bn in 2007. As Malaysia has a well established legal and regulatory framework to support sukuk issues, we are hopeful that 2011 holds greater promise in this space for us".
Raja Teh also adds "We are seeing issuers more willing to list their issues and be subjected to reporting and disclosure requirements in order to attract investors as the credit crisis have caused investors to be more aware of the importance of transparency and are thus demanding greater governance. We see this as a positive development as the industry steps to the next level in embracing higher governance standards."