Malaysia continues to be the leader in the Sukuk market with its combined domestic and international issuances of USD612 billion, according to the International Islamic Financial Market (IIFM) Sukuk Report 2018.

Launched at the IIFM seminar today − an event organised by IIFM and hosted by Labuan IBFC − the report suggests that Malaysia with its deep capital market retained its position as the top Sukuk issuer over its peers from the Far East (i.e. Indonesia with USD63 billion) and Gulf Cooperation Council (i.e. Saudi Arabia USD95 billion and United Arab Emirates with USD68 billion).

Labuan Financial Services Authority Director-General Danial Mah Abdullah said, “Malaysia has always played an important innovative role in Islamic financial services, boasting a comprehensive regulatory framework for Islamic banking, finance, Takaful and asset management.

“As an extension and in support to this, Labuan IBFC has also been an innovative bed for Islamic financial products. For instance, the introduction of Waqf embedded within a private foundation set up as a wealth management structure, through the Labuan International Waqf Foundation is a classic example of this innovation from Labuan IBFC. It is also home to the world’s first USD denominated exchangeable Sukuk. These have contributed to Malaysia’s position as the global leader in Sukuk issuance.”