In 1Q 2023, the global sukuk market issuance stood at USD 34.19bil, recording a 16.6% y-o-y decline over the same period last year (1Q 2022: USD41.00 bil). This was due to heightened market volatility, rising interest rates, and geopolitical uncertainties.
Malaysia remained as the leading issuer during 1Q 2023 dominating nearly 50% of the market share with a total issuance of USD16.3 bil (1Q 2022: USD13.71 bil), a 18.8% y-o-y increase. Indonesia, on the other hand, became the second largest domicile overtaking Saudi Arabia, with 15% market share or USD5.21 bil sukuk issued in 1Q 2023 (1Q 2022: USD5.67 bil – 8% y-o-y reduction). Saudi Arabia substantially reduced its issuance to USD3.66 bil in 1Q 2023, a 64% y-o-y contraction compared to 1Q 2022 (USD10.27 bil).
