Global Sukuk Issuance Fairly Resilient At US$55 Billion - US$65 Billion This Year: RAM

KUALA LUMPUR, March 8 (Bernama) -- Global sukuk issuance is expected to remain fairly resilient at around US$55 billion - US$65 billion in 2016 despite ebbing global market sentiment, particularly in Malaysia amid the weaker ringgit, says RAM Rating Services Bhd (RAM Ratings). Last year's issuance stood at US$66.4 billion, the Malaysia's leading credit-rating agency said in a statement here Tuesday. Given the steep fall in crude oil prices that have adversely affected the core sukuk markets of Malaysia and the Gulf Cooperation Council (GCC), the rating house said its projection took into account these countries' government expenditure cuts and potential delays in infrastructure spending. RAM Ratings' Head of Islamic Finance Ruslena Ramli said Malaysia and the GCC would remain the leaders in global sukuk issuance, supported by the funding requirements of the corporate and quasi-government sectors. "However, we envisage Indonesia in 2016 to still have the economic momentum to play a more significant role in tapping the global sukuk market to fund its government budget," she observed. Historically, she said, more than 90 per cent of global sukuk issuance has originated from Malaysia, the GCC and Indonesia. Meanwhile, another encouraging trend is the rising number of sovereign sukuk issues in 2014 and 2015, which are anticipated to spill over into 2016 and increase the number of countries that are keen on expanding their domestic sukuk markets. RAM Ratings said its analysis of the sukuk markets of GCC member countries suggests that the widening deficits of nations that are more dependent on oil exports could prompt the issuance of sovereign sukuk. --BERNAMA