Global Sukuk Market 2016-2020

This industry research report identifies Abu Dhabi Islamic Bank, Al Baraka Bank, Al Rajhi Bank, Dubai Islamic Bank PJSC, HSBC, Kuwait Finance House, Maybank Islamic Berhad, Qatar International Islamic Bank, and Samba as the key vendors in the global sukuk market. This report also presents a competitive analysis of the market based on geographical regions such as South East Asia, Middle East, and ROW.

Sukuk market size

Market research analysts at Technavio have predicted that the global Sukuk market will grow steadily during the forecast period and will post a CAGR of more than 8% by 2020. This market research analysis identifies the diversification of investment pattern in emerging countries as one of the primary growth factors for this market.

Many Islamic banking institutions have already started seeking strategic partnerships with foreign financial institutions to step up expansions in foreign countries and also benefit from opportunities in untapped markets. The rising disposable incomes have also encouraged more people to invest in Shariah-compliant products. Moreover, the increasing competition, the growing demand with greater sophistication, and innovation in products and services will also add to the growth of the market. 

Islamic finance products like Sukuk are considered unique in the financial sector. Mature and developing Islamic markets are facing shortages in technical expertise in terms of product innovation and in driving sales. The establishment of Islamic finance products in different geographies will help target both Muslim and non-Muslim populations, under the guidance of Muslim scholars. This will create a rise in the awareness for providing globally accepted qualifications that will help industry professionals to develop their professional careers. Also, the market will also witness a number of outsourcing and white labeling activities.

Sukuk market share: Competitive landscape and key vendors

The market is characterized by the presence of several well-established and regional vendors. Owing to their favorable demographics and strong macroeconomic fundamentals, the South East Asian countries hold the maximum potential for growth in Islamic products. To enhance the operating model, to attract large numbers of depositors, and to expand its credit services, vendors in the industry have the need to customize their products. Vendors will also start creating separate MSME (micro small and medium enterprises) business units to develop private equity and venture capital practices and will also deduce strategic moves to enhance the current clientele. Islamic banks will also start focusing on expanding their channel capabilities to offer customized products and services.

The leading vendors in the market

• Abu Dhabi Islamic Bank
• Al Baraka Bank
• Al Rajhi Bank
• Dubai Islamic Bank PJSC
• HSBC
• Kuwait Finance House
• Maybank Islamic Berhad
• Qatar International Islamic Bank
• Samba

Sukuk market growth based on geographical segmentation 

• South East Asia
• Middle East
• ROW

This market study estimates that in terms of geography South East Asia will account for more than 76% of the total share of the market by 2020 and will also dominate this market throughout the forecast period. Sukuk bonds are expected to perform well during the predicted period and will result in attracting foreign issuers from different regions. Also, Sukuk is based on asset-based securitization methods, and this will make it ideal to finance highway networks, new ports, and other infrastructure projects in the coming years.

Sukuk market growth drivers, challenges, and upcoming trends

Modern banking customers often transact online and also use the cyber domain to relate their user experience. This will induce Islamic banking and financial institutions to invest in analytics to offer their customers with better user experience and customized products. Also, the use of social media analytics will also enable these institutions to gauge customer expectations, perceptions, and experiences.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the global Sukuk market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global sukuk market?
• What are the key market trends impacting the growth of the global sukuk market?
• What are the challenges to market growth?
• Who are the key vendors in the global sukuk market?
• What are the market opportunities and threats faced by the vendors in the global sukuk market?
• Trending factors influencing the market shares of the South East Asia, Middle East, and ROW.
• What are the key outcomes of the five forces analysis of the global sukuk market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Structured Finance Market 2016-2020
• Global Microfinance Market 2016-2020
• Global Islamic Financing Market 2015-2019