Banking News

Islamic finance forecast increase is positive news for Malaysia

Islamic finance forecast increase is positive news for Malaysia

(14 March 2018 – Malaysia) A report released by Moody’s has forecast a 13 percent increase in sukuk issuance amongst banks in 2018.

Malaysia currently represents 34 percent of total global sukuk issuances and is expected to benefit from the forecast growth in Islamic finance, a segment which continues to grow faster than conventional assets.

While the country is expected to continue its dominance over global sukuk issuance volumes in both the short and long-term markets, Saudi Arabia remains the largest market for Islamic finance with assets worth US$292bn in 2017, accounting for almost three quarters of the sector’s total loan portfolio.

“Within Malaysia, we expect that sukuk issuance among Islamic financial institutions will grow 10-13% year-on-year in 2018. The bulk of such issuance will be denominated in ringgit, similarly to previous years,” the Moody’s report said.

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