Diversification of Islamic Financial Instruments
30
Figure 4: Sovereign Sukuk by Their Contracts
Source: IIFM 2017
2014 and 2015 were strong years for Sovereign Sukuk issuances in terms of newer
jurisdictions as countries outside the OIC and previously untapped OIC membe countries’
governments entered the sovereign Sukuk markets.
 International organizations and governments in 13 jurisdictions tapped the global
sovereign Sukuk market in 2015 alone. The markets witnessed the entry of the
Sultanate of Oman in the GCC with the jurisdiction issuing an OMR250 million
(USD650 million) five-year Sukuk Ijarah in October 2015. It was originally planned as
an OMR 200 million issuance but was oversubscribed by 1.7 times which led the
government to upsize the issuance. This Sukuk issuance not only raised capital for the
Sultanate but also acted as a catalyst for the Islamic banks, Islamic funds and Takaful
companies to invest their excess liquidity. They are expected to follow up with
another issuance this year.
 African continent witnessed Ivory Coast (Cote D’Ivoire) becoming the latest African
state to enter the Sovereign Sukuk markets in the end of 2015 by launching its five-
year sovereign Sukuk programme worth XOF150 billion19 (USD250 million). The
Sukuk issuance has been arranged and supported by the Islamic Corporation for the
Development of the Private Sector, an IDB affiliate, and the proceeds will be raised to
finance development projects in Ivory Coast.
 Another notable issuance was the repeat offering of Hong Kong 5 year Sukuk worth
USD 1.1 billion.
 Turkey has been fast catching up on the sovereign Sukuk market, and 2015 witnessed
the government treasury tapping the sovereign Sukuk market twice in 2015
Sukuk Ijarah;
71,00%
Sukuk Murabaha;
0,21%
Sukuk Salam;
4,27%
Sukuk Wakalah;
23,00%
Hybrid; 2,18%
Sovereign Sukuk by Contract 2001-2016