Malaysia continues to dominate global sukuk markets in 2020 with a market share of 39.2 per cent despite the impact of the pandemic on the global economy and economic sentiment.

RAM Rating Services Bhd (RAM Ratings) revealed that global sukuk issuance rose 16.8 per cent to US$152.6 billion (RM632.8 billion) last year compared with US$130.6 billion in 2019.

The next biggest sukuk markets were Saudi Arabia (20.4 per cent) and Indonesia (17.5 per cent). Collectively, these markets contributed 77.1 per cent of total global sukuk issuance,” it said in its latest Sukuk Snapshot report.

It said the contagion impact of Covid-19 saw steady issuances from sovereigns in 2020 to finance stimulus packages in support of the pandemic-ravaged economies.

RAM Ratings attributed the local economies growth to the supportive monetary policy and strong government spending.

“As a result, sovereign issuances increased 9.2 per cent year-on-year (y-o-y) to US$87.5 billion in 2020 versus US$80.1 billion in 2019.

Three sovereign heavyweights — Indonesia with its 29.9 per cent market share (US$26.2 billion), Malaysia with 28.2 per cent (US$24.6 billion) and Saudi Arabia with 20.7 per cent (US$18.1 billion) accounted for more than two-thirds of global sovereign issuance in 2020.

RAM’s Sukuk Snapshot is designed as a quick reference point for sukuk data and trends. The publication aims to serve the needs of market practitioners, enabling them to monitor global and Malaysian sukuk market developments.