Islamic financial markets were not immune from the impact of the US Federal Reserve’s tapering deliberations in 2013. Global sukuk issuance fell by 13% year on year, dropping to $117bn from a record $131bn in 2012, as investor caution over emerging market volatility hit total issuances in Malaysia, and to a lesser extent, the Gulf Co-operation Council (GCC) countries. Since then, a nascent revival of fixed-income markets in these regions has gone hand in hand with a swift rebound of sukuk transactions.
In the final quarter of 2013, total issuances amounted to $36bn, while in the first quarter of this year that figure fell slightly to $31bn. Despite this first quarter dip, many observers feel 2014 could be close to a record-breaking year for total sukuk issuance.
