Sukuk – A key asset class in the Islamic finance industry
Sukuk has witnessed growing demand in recent years, especially among European and US institutional investors, due to its transparent properties, prohibition of speculation and attractive returns. With current market conditions being highly volatile, more investors are calling for increased transparency and ethical decision making by the issuers, shifting focus towards Sukuk. With demand for Sukuk expected to rise in the coming years, the attached paper sheds light on the significance of and key trends in the asset class.
• Sukuk issuance increased at a CAGR of more than 20% from 2015 to 2019, indicating
growing investor interest in the asset class
• Many indices established to track Sukuk performance, such as the S&P Global High
Yield Sukuk Index, have shown positive returns over the last five years
• Green Sukuk issuance, based on ESG principles, is expected to increase significantly
in the coming years, with more than USD800bn in funding requirements due in Asia’s
• With the COVID-19 impact likely to take time to diminish, we expect demand for the Sukuk
asset class to increase in the coming years, with more geographically diversified issuance as
more countries participate
Deepika Khullar has over 7 years of experience in research and consulting industry. At Acuity Knowledge Partners, she is a part of the Investment Banking division, currently supporting clients in the Middle East region across areas such as industry and business research and capital markets. During her tenure at Acuity, Deepika has worked with leading investment banks across the US, Middle East and Asia. Her expertise lies in the area of originations support, preparing industry focused-reports, Thematics, IMs etc and has a good understanding of and Islamic finance. She holds a B.Com (Hon.) from Shri Ram College of Commerce, Delhi University and an MBA with a specialization in Finance from Lal Bahadur Shastri Institute Of Management.
Mohit Jain is associated with Acuity Knowledge Partners since 2011 and has worked with clients of diversified geographies in investment banking domain during the tenure including North America, Europe, Asia and Middle East. An expert in financial modelling and valuations, Mohit has strong experience working across sectors including TMT, Real Estate, FIG, Consumer and O&G among others. With hands on experience in the M&A domain, he has supported clients on a wide range of products such as financial modelling, case studies, industry research, transactions, comps, pitch books, profiles and deal origination, to list a few. He also possesses significant exposure to Middle East markets and Islamic Finance industry, having worked with regional clients over the years. Mohit holds a bachelor’s degree in Commerce from Sri Venkateswara College, Delhi University and an MBA from IILM, New Delhi.
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