#Sukuk maintains positive outlook; undeterred by continued slowdown

Thomson Reuters has released the findings of its fifth consecutive Sukuk Perceptions and Forecast study. Despite a bleak 2015, market players remained hopeful for a robust year ahead. Core markets have adapted to ongoing low oil prices, while apprehension over expected global interest hikes has begun to subside. However, the decision from Bank Negara Malaysia (BNM) to cut short-term Sukuk issuances continues to dampen Sukuk supply. Total Sukuk issued in the first 9 months of 2016 dropped further by 18.46% to $39.8 billion from $48.8 billion for the same period in 2015. According to Thomson Reuters' Managing Director, Nadim Najjar, the global Sukuk market continued to drop in terms of volume and value during 2016. The report found that both potential demand and supply of Sukuk are expected to grow, with demand substantially exceeding supply until 2021.