Financial Outlook of the OIC Member Countries 2017
36
In domestic sukuk markets, Sukuk Al Murabahah has been the most popular sukuk structure
for years. In 2016, USD 21.7 billion or 38% of total domestic issuances were based on the
Sukuk Al Murabahah structure. Sukuk Al Ijarah and Sukuk Al Wakalah are still important for
the market and they constitute 43% of the total domestic sukuk issuances (Figure 34).
Figure 34: Sukuk Structures in Domestic Sukuk Issuances (2016)
Source: IIFM
The sukuk market experienced moderate improvements year by year in both issuances volume
in the primary market and sukuk outstanding in the secondary market. Secondary market
returns performances of sukuk instruments depends on the global economic conditions
because the sukuk market operating alongside the bond market in the financial world. Based
on a potential increase in public spendings after the US Presidential election results in
November 2016, demand by investors for USD instruments also USD sukuk triggered.
Islamic Funds
Islamic funds are investment vehicles which take the form of equal participating shares/units,
representing the shareholders’/unitholders’ share of the assets and entitlement to profits or
losses. There are many types of Islamic funds such as Islamic index funds, Shariah private
equity funds, Sukuk funds, Islamic equity funds etc.
Saudi Arabia and Malaysia are the leaders in Islamic funds market. In 2015 Saudi Arabia,
Malaysia and Iran make up 81% of total global Islamic funds market. Apart from these
countries, the position of non-OIC member states (United States, Luxemburg and UK) among
the top ten countries is notable (Figure 35)
38%
33%
10%
9%
8% 2% Sukuk Al Murabahah
Sukuk Al Ijarah
Sukuk Al Wakalah
Sukuk Al Musharakah
Sukuk Al Mudharabah
Sukuk Al Salam