Financial Outlook of the OIC Member Countries 2017
34
Overall, despite challenging economic conditions, the majority of jurisdictions recorded
reasonable levels of growth in key Islamic banking statistics, with expansion of their
assets, financing and deposit portfolios at double-digit rates. The value of Islamic banking
assets globally is forecasted to amount to approximately USD 1.51 trillion in 2016.38
3.4 CAPITAL MARKET SECTOR
Sukuk Market
The sukuk market continues to evolve in recent years and expand to new regions with the bulk
of issuances coming from sovereign and quasi-sovereign entities which is having a positive
impact on the development of Islamic finance industry and the market itself.
Total global issuances increased around 44% and amounted to USD 88.3 billion in 2016 which
was USD 60.7 billion in 2015 (Figure 30). The increase in volume during 2016 was due to
steady issuances from Asia, GCC, Africa and certain other jurisdictions while Malaysia continue
to dominate the Sukuk market and also Indonesia and Turkey increased sukuk issuances as
well.
Figure 30: Global Sukuk Issuances
Source: IIFM
Total international sukuk issuances stood at USD 31.56 billion in 2016 which was USD 20.9
billion in 2015 and total domestic sukuk issuances reached to USD 56.7 billion in 2016 from
USD 39.8 billion in 2015. In 2016 both international and domestic sukuk issuance increased
significantly.
In terms of issuer status sukuk issuances divided into four groups as sovereign, quasi-
sovereign, corporate and IFI issuers. The amount of sukuk varies according to issuer status and
whether issued at domestic or international sukuk market. In the international market quasi-
sovereign sukuk issuances constitute 51% of the total issuances. Nevertheless, in the domestic
38 IFSB Financial Stability Report 2017, page 13
2001-
2004
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million USD 19,22 14,01 33,61 50,04 24,34 38,07 53,13 93,57 137,60 135,87 108,30 60,69 88,28
0
25
50
75
100
125
150