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Saudi Arab to dominate the Sukuk Market in 2012

Published: 02/01/2012 01:09:00 AM GMT
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Asia and out of the Middle East Saudi Arab seems to dominate the Sukuk Market in 2012 as they have been investing the money in all the right places, with high quality qusai sovereign issuers taking the lead for funding and investing in projects relating to the enhancing power resources and infrastructure through oil, gas, petrochemicals and transport sectors. Saudi government has already planned to invest in the troubled zones which seem to pay off by the end of the year which would leave huge profits to the country.

Many bankers claim that 2012 would be a very suitable financial year for Sukuk market as in 2012 the market was taken over by ringget and it dominated the industrial development which caused most of the Western businesses to invest there, although the Middle Eastern region being the richest region could not reach the heights through dirham as the investment lacked the market share for sukuk loans. The Sukuk issuance would no doubt remain certain for ringget which would be between 50billion RM to 60billion RM which covers almost 70% of the global share of the Sukuk. Bankers having a close eye on the international Sukuk market also claim that in the financial year of 2012 Wakala and Ijara Sukuk would dominate the market which would attract many countries from Asia Paccific, Affrica and countries like Kazakhistan.

International bankers also claim that the new wave of income generation would now initiate from Malaysia as it is about to launch a new project for worth 34.35 billion RM which collaborates with the real market leaders and it would make way for other countries to rule the Sukuk market. The project is based on the mega Sukuk program consisting of Projek Lebuhraya Utara-Selatan Berhad (PLUS), a wholly-owned subsidiary of PLUS Expressways Berhad, the major provider of expressway operation services in Malaysia.

Both the collaborating members have been subjected to billions of worth as PLUS Expressways Berhad holds 94.12 percent direct and indirect interest in PLUS BKSP via PLUS Kalyan (Mauritius) Private Limited they rule the business and are planning to become internationally acclaimed one of the biggest investors and business personnel.

In the year 2012 both the non government and government projects would be assisted and based upon the figures quoted by the Sukuk market for Saudi investors as well as the current Sukuk leaders of Malaysian investors.

But the profit margin would now be at a shift as the European banks have also shown interest for investing within the troubled zones of Middle East this would give way for the only stable country which is economically flourishing in all currencies, Saudi Arab would be the ruler as their Capital Market Authority CMA has also stated that via the offers of security of all types Saudi business could flourish and would make way for diversified investments that the region needs.

It has also been highlighted by Saudi Basic Industries Corp SABIC as the world’s largest petrochemical exporters to issue and offer Sukuk, with a value that does not exceed 5 billion SR, which would be the 5th investment of SABIC in Sukuk market and every time it has been subjected to huge profits. That is not all Saudi Aramco world’s largest oil producers and Saudi Aramco Total Refining and Petrochemical Company SATROP on a joint venture would also be participating on generating huge revenues as French investors have also claimed to promote the Saudi petroleum benefits which has begun from 3.75 billion SR and is about to pay off in 2012 making Saudi Arab as the biggest Sukuk market in 2012.

Sukuk market expected to be ruled by Saudi Arab.