Meanwhile in Asia, domestic growth catalysts include the faster implementation of public sector projects (such as the mass transit and other socio-economic projects) which are expected to boost economic growth in the region. According to the Asian Development Bank, the cost of building power plants, transportation hubs, telecom facilities, water systems and other infrastructure across Asia will exceed USD8.0tln over the next 10 years.
· More Islamic financial institutions as well as other types of issuers are expected to tap the sukuk market
· Increasing demand and popularity for Shariah-compliant products and structures post global financial crisis will form a strong demand base for sukuk moving forward.
· Initiatives taken by various jurisdictions in developing legislative and regulatory frameworks, as part of efforts to attract foreign investments, would allow these new players to explore the sukuk industry for the first time.
Moving into 2013, we expect governments or sovereigns to continue to drive the sukuk issuances, encouraging corporate issuers as market conditions continue to improve. We believe, that the growth will continue to be supported by increasing popularity of Shariah-compliant products, governments' support for Islamic finance, huge investment and financing requirement in the GCC and Asia regions, as well as issuers' desire to tap investors from the Middle East and Muslim Asia.