Malaysia which has been the trading hub for Islamic banking and finance in the recent years has decided to issue $1Bn Islamic sukuk by the end of June this year. The plan is to raise the total amount to $2Bn by the end of July. Malaysia has heavily invested in the Islamic finance market, sensing the market trend of more and more people choosing the Islamic finance over regular banking solutions. Malaysia is the centre of Islamic sukuk sales around the world having the world’s biggest sukuk market. The last sukuk issuance in Malaysia was in 2010 when sukuk worth $1.25 bn were issued.
Malaysia which has been the trading hub for Islamic banking and finance in the recent years has decided to issue $1Bn Islamic sukuk by the end of June this year. The plan is to raise the total amount to $2Bn by the end of July. Malaysia has heavily invested in the Islamic finance market, sensing the market trend of more and more people choosing the Islamic finance over regular banking solutions. Malaysia is the centre of Islamic sukuk sales around the world having the world’s biggest sukuk market. Further details reveal that Maybank, HSBC, Citi and CIMB will initially arrange the issuance of Islamic bonds through their Islamic banking sections. Once the initial bonds are issued, the Malaysian government will raise the investment to $2bn at the end of july to complete the sukuk sales deal. The banks planning to sell the latest Islamic bonds are HSBC Middle East, Bahrain's Al Baraka Bank and Qatar Islamic Bank. The last sukuk issuance in Malaysia was in 2010 when sukuk worth $1.25 bn were issued. One of the reasons suggested for this investment is the revival of the global Islamic finance market and products this year. The Islamic finance and banking market has seen faster revival than other competitors and one of the forerunners has been the global sukuk sales. This is more evident due to the fact that a recent economic poll suggested global Islamic sukuk will rise as much as 60% this year. The global sukuk market shrunk to $14billion, a drop of nearly 26% in sales volume last year, especially after the Dubai’s debt restructuring.
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