Financial Outlook of the OIC Member Countries 2017
35
market sovereign sukuk issuances accounted 58% of the issuances. The issuances by IFIs
remain stagnant in comparison with the other issuer types (Figures 31 and 32).
The sukuk industry still continues to depend heavily on government issuances to drive the
market. According to the sukuk report published by the International Islamic Financial Market
(IIFM) due to the tighter economic and geo-political conditions in different parts of the world
the growth in sukuk market is expected to be driven by sovereign and quasi-sovereign issuers.
In order to deepen the sukuk market, there is a need for corporate entities to become more
active in issuing sukuk taking lead from jurisdictions like Malaysia.
Figure 31: International Sukuk Issuances
(2016)
Figure 32:Domestic Sukuk Issuances (2016)
Source: IIFM Source: IIFM
In international and domestic sukuk markets sukuk financing structures varies based on
market needs and trends. In the international Sukuk markets, Sukuk Al Ijarah has historically
been the more popular structure for issuance. Since 2010 share of Sukuk Al Ijarah started to
decline and its place was taken by Sukuk Al Wakalah. In 2016 Sukuk Al Wakalah share rose to
77% amounting to USD24.2 billion of the total international issuances (Figure 33).
Figure 33: Sukuk Structures in International Sukuk Issuances (2016)
Source: IIFM
51%
27%
12%
10%
Quasi-Sovereign Sovereign
IFI's Corporate
58%
32%
6% 4%
Sovereign Corporate
Quasi-Sovereign IFI's
77%
16%
5% 2%
Sukuk Al Wakalah
Sukuk Al Ijarah
Sukuk Al Mudharabah
Sukuk Al Murabahah