GLOBAL SUKUK ISSUANCE TO HIT 2007 PEAK NEXT YEAR

KUALA LUMPUR, Nov 16 (Bernama) -- Global sukuk issuance in 2011 is expected
to hit the 2007 peak of US$34.2 billion, backed by strong demand for Islamic
financial instruments.

By end of this year, sukuk issuance could potentially reach US$30 billion
with Malaysia continuing to dominate the market, consultant Baiza Bain from
Syariah advisory service provider, Amanie Business Solutions, told reporters
here Tuesday.

He said total sukuk issuance in the first half of 2010 was US$16.5 billion
compared to US$7.6 billion in same period a year before. Malaysia contributed
60.5 per cent while Arabia and Indonesia trailed at 14.1 per cent each, he
added.

Approximately 79.7 per cent of the first half 2010 fund-raisers were
sovereign and quasi-sovereign entities.

"Since middle of this year, a lot of issuance have been on standby because
issuers are waiting for the right time to enter the market.

"Thus, in 2011 we will see a very similar uptrend and even higher than the
2007 peak," he added.

Baiza said the drive for sukuk demand was the growing preference for
shariah-compliant products from conventional and Islamic investors particularly
after the subprime crisis.

Amanie President and Chief Executive Officer Dr Mohd Daud Bakar said renewed
activities in the sukuk market would be a catalyst for growth in the next cycle,
and the market would continue to show resilience especially in Asia.

"Worldwide Syariah-compliant assets, including deposits at Islamic finance
institutions have been pegged at US$950 billion by Moody's but could grow to
US$1.6 trillion by 2012.

"Large global financiers such as Citigroup and HSBC Holdings are aggresively
chasing this business via sukuk and Syariah approved products," he added.
-- BERNAMA