Issuances of Islamic bonds globally hit a record high in 2020, rising 20 per cent annually to $175 billion, driven by demand in Asia and the Middle East as the market remains attractive to issuers and investors, despite the Covid-19 pandemic, according to the International Islamic Financial Market (IIFM).
The longer tenor sukuk issuances by sovereigns and financial institutions, along with an increase in short-term sukuk issuances, drove last year's record growth, the IIFM said.
More than 90 per cent of the $648bn sukuk outstanding globally were issued by Malaysia, Saudi Arabia, Indonesia, the UAE and Bahrain, while the market share of Pakistan, Oman, Nigeria, Egypt and regions such as Africa is increasing, the organisation said. About $98.4bn in sukuk, with an issue size of $100 million or above and with tenor of more than a year, is set to mature in 2021 and 2022.
“Although the effects of the unprecedented situation caused by the Covid-19 pandemic continued during the year, the impact of pandemic was confined and limited to a few corporate issuers and overall sukuk remained an attractive instrument and the positive growth trajectory continued during first half of 2021,” Khalid Al Hamad, chairman of the IIFM, said in the 219-page report.
Global sukuk issuance is set to increase 11 per cent to as much as $155bn in 2021, driven by low interest rates and abundant liquidity, S&P Global Ratings said in a separate July report. A continued economic recovery, accelerated vaccination campaigns and oil prices of about $65 a barrel this year will also support growth in sukuk issuance, the ratings agency said.
A global economic recovery, fiscal and monetary easing, as well as liquidity injected by major governments and central banks globally are expected to drive the post-pandemic growth of Islamic finance assets, Alpen Capital and Alpen Asset Advisers said in June. A growing Muslim population, more sukuk issuances and ethical consumerism are set to boost demand for Sharia-compliant products, it said.
There is a growing need to address the challenges that arise with the development of any financial instruments, Mr Al Hamad said.
“These should be tackled by creating greater transparency and standardisation in financial documentation and practices.”
Standardisation brings the required unification, efficiency and transparency needed for the advancement of the sukuk market, Ijlal Alvi, chief executive of the IIFM, said.
“It is also important that the industry stakeholders provide support for continued innovation in the sukuk market particularly in the areas of Environment, Social & Governance (ESG) goals, FinTech and Waqf-focused sukuk,” Mr Alvi said. “These factors present a huge potential that will play a major role in the development of the sukuk market in years to come.”
ESG-centred financial instruments will play a vital role in a sustainable and green post-Covid recovery, Zamir Iqbal, chief financial officer at Islamic Development Bank (IsDB), said.
“This will offer attractive opportunities for sukuk issuers to cater to growing demand,” he added.
The issuance of more debut sukuk and successful refinancing of maturing sukuk are among the indications that the strong demand for Islamic bond issuances will continue in 2021, the IIFM said.
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Ultra processed foods
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Various Artists
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Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
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