Welcome to the September 2024 edition of In the Know, Baker McKenzie's Leveraged Finance newsletter that analyzes significant trends and salient legal issues for participants in leveraged finance and high-yield markets around the globe.
Global sukuk issuance is projected by S&P Global to reach USD 160 billion to USD 170 billion in 2024, driving the total global outstanding sukuk market to an estimated USD 875 billion. The popularity of sukuk arises from consensus among Islamic scholars and standardized documents, with favorable tax treatment in many jurisdictions fueling market growth. In this edition of In the Know, we look into sukuk structures, their types, and delve into the key documents and risks associated with two typical structures and scenarios. Additionally, we discuss the future of Islamic finance and its growth drivers.
Key takeaways
- S&P Global expect global sukuk issuance will reach about USD 160 billion to USD 170 billion in 2024, with the total global outstanding sukuk growing to an estimated USD 875 billion according to Franklin Templeton.
- The future of Islamic finance depends on several factors, including the harmonization of Shariah rulings, digitalization, ethical investments, and the development of untapped markets.
* Khalid Alyafi contributed to this article