5.26 AM Monday, 26 February 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:27 06:41 12:35 15:52 18:22 19:36
26 February 2024

Malaysian sukuk seen at $4 billion

Malaysia saw 78% drop in Islamic bond issuance last year. (AFP)

By Reuters

New issuance of Shariah corporate bonds in Malaysia will total about $4 billion (Dh14.69bn) this year, with Europe and Middle East issuers keen to tap the market, the world's top arranger of Islamic debt said yesterday.

Malaysia, one of the world's top Islamic bond markets, saw a 78 per cent drop in issuance last year to $5.86bn, according to Islamic Finance Information Service.

"Issuers from other parts of the world are now trying to find new markets where they can actually issue and the ringgit sukuk market seems to be a very attractive one for them to tap," Badlisyah Abdul Ghani, Chief Executive of Malaysia's CIMB Islamic Bank, said.

CIMB Islamic is part of CIMB Group, which is listed on the Malaysian stock exchange through Bumiputra-Commerce Holdings.

Bumper oil earnings in the Gulf region and rising demand for ethical investments have boosted the $1 trillion Islamic finance industry, but Shariah debt issuance has shrunk in the past year due to the global credit crisis.