HSBC forecasts global sukuk volumes of $44 billion in
2012, of which the Middle East region could comprise just over 30 percent, the
bank's Islamic arm Amanah, said on Tuesday.
Malaysia will continue to dominate sukuk issuance, with
about 60 percent of total volumes forecast globally.
"One of the key drivers of this will be the
continued level of liquidity within the overall Islamic investor base, whether
in Middle East or Asia, the market is still very much characterized by a high
degree of liquidity and relatively limited levels of supply," said
Mohammed Dawood, managing director of Islamic global markets for EMEA.
"From a volume, country, and issuer perspective,
2012 is going to be a year when this market will continue to make its
mark."
Asked whether a possible sukuk default by UAE's Dana Gas
would affect forecast sukuk issuance this year, Dawood said it wouldn't be
"helpful".
Dana Gas has a $920 million sukuk maturity due in
October. It has hired Deutsche Bank to advise on the Islamic bond and address
investor concern on a repayment plan.
The United Arab Emirates and Saudi Arabia are likely to
dominate the regional sukuk issuance landscape. So far this year, Emirates
Islamic Bank and First Gulf Bank, as well as private corporate and a first-time
issuer, Majid Al-Futtaim Holding, have issued sukuk.
In Saudi Arabia, the General Authority for Civil Aviation
(GACA) issued a $4 billion equivalent riyal-denominated bond in January. The
government-backed bond, on which HSBC acted as arranger, is the largest single
tranche sukuk to date.
"We increasingly expect that businesses consider
sukuk as a reliable and permanent source of capital (in Saudi Arabia) ... and
the number of investors and the appetite for sukuk is growing," said
Muhammad Farhan, head of Islamic Finance at HSBC Saudi Arabia.
