IIFM Book 2017

1 ASUKUK REPORTA COMPREHENSIVE STUDY OF THE GLOBAL SUKUK MARKET 6TH EDITIONJULY 2017 VISIONTRADITIONPROGRESSCONTINUITYUNIFICA TION HARMONIZATION TRANSPARENCYB And eat of the things which Allah (God) has provided for you, lawful and good. And fear Allah (God), in Whom you believe. (Surat Al-Ma'idah (The Table Spread), C 5, V 88)" " ) 88 ) Allah (God) the Almighty said in the Glorious Qur an: 9 And eat of the eeeeeeeeeeeeeeeeeeethththhhhhhhhhhhtthhh hhhhiniiiiiiiiiiiiigswwwhhhihihihihihhhi hihihihihhihihihhhihihihhhhihhhhhhhhihhh hihhihhhhhhhhhhhhhhhhhhhhhhhhhhhchchchch chchchchhchchchchhchchchchchhchhhchchchh hhchhhhhchhchhh AlAllAAlAlAlAAlllllllAAAlalalaalaalaaala laaaaalalaaaalllllhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhhhh(G(G(G(GGG(G(G(GGG(G(G(G(GGG (G(GGGGG(G(G(G(GGGG(GGGGGGGGG odododododdododododododddodododododododo ododdddooododooooodo))) )))) ) ) ) ) )))))))))) )))))))))

2 Hahahahahahahahahahahahahahahahahahahhah aahasssssssssssssssprprprprprprprprppppp rprpppprrppprpppovovovovovovovovovovovoo vovoovovovovovovovooovvovovovvovoovovovv ovididididididididididiididididididdidid idiedededededededededdededededededededed ededdeedffffffffffffffffforooooooooooooo ooooooyyyyyyyyyyyyyou, lawful and AlAlAlAlAlAlAlAlAlAlAAllalalalalalaaalal aaah hhhhhhhhhhhhhhh(G(G(GG(GG(G(GGG(G(G(GG(G (G(G(GGGG oodododododoododododoodoodododoododooooo oooooooooo),),))),)))),),),),)),))),),)i iiiiiiiiiiiiiiiiiiiiinnnnnnnnnnnnnnnnnnn nnnnnnnnWWhWhWhWhWhWhWhWWhWhWhWhWhWhWhWh WhWhWhWhWhWhWhWhWWWomomomomomomomomomomo mommmomomomomomomommmomyyyyyyyyyyyyyyyou ouououououououuouuuuuouuuouuuou (Surat Al-Ma'idddadadadadadaddadaddaddddddddddd hhhhhhhhhhhhhhh(T(T(T(T(T(T((T((T(T(T(T( The Table Sprpppppppppppppead)ddddd)d)d)dddd)d)d)d )dd)dddddd)d))d)dd)d)d)d)d), C CCCCCCCCC CCCCCCCCCCCCCCCC5,5,5,5,5,5,5,5,5,5,5,55 5,55555555 VVVVVVVVVVVVVVVVVVVVVVV 8888888888888888888888888888888888)

3 """ 8888 )))))))))))))))))))))))))))))))))) """"""""""""""""""""""""""" )))))))))))))))))))))Allah (God) thhheeAlmighty said in theGGllorious Qur an.

4 9 In the Name of Allah, the Most Gracious, the Most MercifulIIIFM is a standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardization of Islamic financial contracts and product templates relating to the Capital & Money Market, Corporate Finance and Trade Finance segments of the IFSI. IIFM plays its role in market unification by developing best practices at the global level and achieving Shari ah harmonization through its efforts for creation of a robust, transparent and efficient Islamic finance industry.

5 IIFM also contributes in creating industry awareness by organizing specialized seminars and technical workshops as well as publishing research was founded in 2002 by the collective efforts of the Islamic Development bank , Autoriti Monetari Brunei Darussalam (formerly Ministry of Finance Brunei Darussalam), bank Indonesia, bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central bank of Bahrain (formerly Bahrain Monetary Agency) and the Central bank of Sudan as a neutral and non-profit organization. Besides the founding members, IIFM is also supported by certain regulatory and government bodies such as Indonesia Financial Services Authority, Dubai International Financial Centre Authority, Nasdaq Dubai, State bank of Pakistan, The National bank of Kazakhstan, and by a number of international and regional financial institutions active in Islamic finance as well as other market was formed under Royal Decree No (23) Year 2002 of the Kingdom of Bahrain.

6 About International Islamic Financial Market (IIFM)Abu Dhabi Commercial BankAbu Dhabi Islamic BankAhli United BankAjman BankAl Baraka Banking GroupAl Hilal BankAl Salam BankAllen & Overy LLPA ttijari Al Islami-Commercial bank of DubaiAutoriti Monetari Brunei DarussalamBahrain Islamic BankBank ABC IslamicBank Al JaziraBank Al KhairBank IndonesiaBank Islam Brunei DarussalamBank Kerjasama Rakyat Malaysia BerhadBank Muscat SAOGBank of London and the Middle EastBorsa IstanbulCentral bank of BahrainIIFM GLOBAL MEMBERSC entral bank of SudanCiti Islamic Investment BankClifford Chance LLPCr dit Agricole Corporate and Investment BankDDCAP LimitedDubai International Financial Centre AuthorityEmirates Securities and Commodities AuthorityEquitable Financial SolutionsEuroclearEY BahrainGatehouse BankGlobal Banking CorporationGulf

7 International BankHong Leong Islamic bank BerhadIbdar BankInternational Investment BankIslamic Development BankIslamic International Arab BankIthmaar BankJordan Islamic BankKhaleeji Commercial BankKuveyt Turk Participation BankKuwait Finance HouseKuwait Finance House-BahrainLabuan Financial Services AuthorityMalaysian Rating Coporation BerhadNASDAQ DubaiNational bank of Abu DhabiNational bank of FujairahNational bank of KazakhstanNational bank of KuwaitNATIXIS Dubai BranchNoor BankOCBC Al-Amin bank BerhadQInvestSeera Investment BankStandard Chartered SaadiqState bank of PakistanThe National Commercial BankTurkiye Is BankasiUnited Gulf BankZiraat Katilim BankasiIIFM FOUNDING AND PERMANANT MEMBERSC entral bank of BahrainIslamic Development BankCentral bank of SudanBank IndonesiaAutoriti Monetari Brunei DarussalamLabuan Financial Services AuthorityIIResearch, Database Management & Review TeamMr.

8 Ijlal Ahmed Alvi Dr. Ahmed Rufai Mr. Ismail Dadabhoy Mr. Usman M. Naseer Mr. Babar Naseer Mr. Tareq FouadIIIIID isclaimerIIFM has prepared this publication for general information purposes only and this does not constitute an invitation or solicitation to purchase, subscribe for or sell any Sukuk or to engage in, lead into, conclude or refrain from engaging in any the information contained in this research report has been obtained from sources considered to be reliable. The Sukuk case studies presented are based on the author s impression of the structure of the mentioned Sukuk on the basis of information derived from the prospectuses, term sheets and news briefs on the Sukuk. While every effort has been made to ensure its accuracy, IIFM or the author/s makes no guarantee, representation or warranty as to its accuracy or completeness.

9 Also IIFM or the author/s of articles and case studies contained herein accept no liability whatsoever for any direct, indirect, consequential, or other damages and loss arising from any use of this publication. IIIIVA bstractThis research report studies the growth and the development of international and domestic Sukuk issuances in recent years globally and sheds light on the different Sukuk structures widely used in various jurisdictions that are active in issuing Sukuk. In addition the report aims to provide a deeper understanding of the mechanisms of this most popular financial instrument in the Islamic Capital Market with some case studies and Sukuk market continues to evolve and expand to new regions with the bulk of issuances coming from sovereign and quasi-sovereign entities which is having a positive impact on the development of Sukuk market.

10 In order to create depth in the Sukuk market, there is a need for corporate entities to become more active in issuing Sukuk taking lead from jurisdictions like recent years, the structural preference of issuers has shifted to Murabahah, Wakalah and Mudarabah modes from structures requiring more tangible assets. Striking a right balance in diversification of Sukuk structures is needed in order maintain orderly growth of the market. This research report provides invaluable information on the prospects and trends of the global Sukuk market and highlights some major issuances around the world. This report can be used as a benchmark by all the industry stakeholders and decision makers, particularly in new jurisdictions as well as regions with high concentration of the worlds Sukuk issuances such as GCC countries and Asia, in their assessment of trends in the issuance of Sukuk across the globe.