Traditionally, the Islamic finance industry’s growth has been driven by the domestic performance of markets such as Malaysia and Saudi Arabia. With total assets now close to $2000bn, this has been a considerable achievement. Today, however, a growing number of cross-border transactions point to the developing internationalisation of the sector. This trend is offering Islamic banks new growth opportunities along key international capital corridors, while also providing fresh solutions to long-term challenges, including their liquidity management.
In a recent example, Turkish lender Turkiye Finans Katilim Bankas commenced its five-year RM3bn ($933m) sukuk programme through an RM800m issuance on June 30. This was the single largest Malaysian ringgit-denominated foreign issuance in the country, as well as the first time a Turkish lender has tapped the Malaysian market to raise capital.
