Sukuk Overview & Trends

Conference on the Role of Sukuk in DevelopmentFriday, 18th May 2012, Point Hotel Barbaros, Istanbul

Ijlal Ahmed AlviChief Executive OfficeIIFM

Contents

Global Sukuk Market Stats Overview & Trends

Where to Expect New Grow

1Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

0.000

10,000.000

20,000.000

30,000.000

40,000.000

50,000.000

60,000.000

70,000.000

80,000.000

90,000.000

100,000.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q 2012

1,172 1,371

6,4108,140 12,180

30,014

48,962

18,82625,594

46,313

93,723

44,904

Global Sukuk Issuances (All Currencies)Jan 2001 – 1Q 2012

(Amounts in USD Millions)

Year SOURCE: IIFM SUKUK ISSUANCE DATABASE

2Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Emirati Dirham (AED)USD 8,185 Million

2.42%Bahraini Dinars (BHD)

USD 4,772 Million1.41%

Bruneian Dollars (BND)USD 2,965 Million

0.88%

Chinese Yuan Renminbi(CNY)

USD 78 Million0.02%

Euro EURUSD 221 Million

0.07%

British Pounds (GBP)USD 261 Million

0.08%

Gambian Dalasi (GMD)USD 49 Million

0.01%

Indonesian Rupiah (IDR)USD 10,298 Million

3.05%

Iranian Riyals (IRR)USD 198 Million

0.06%

Jordanian Dinars (JOD)USD 119 Million

0.04%

Kuwaiti Dinars (KWD)USD 329 Million

0.10%

Malaysian Ringgit (MYR)USD 205,509 Million

60.87%

Pakistani Rupees (PKR)USD 5,181 Million

1.53%

Qatari Riyals (QAR)USD 9,548 Million

2.83%

Saudi Riyals (SAR)USD 16,592 Million

4.91%

Sudanese Pounds (SDG)USD 13,214 Million

3.91%

Singapore Dollars (SGD)USD 1,295 Million

0.38%

United States Dollars (USD)USD 58,775 Million

17.41%

Yemeni Riyals (YER)USD 18.7 Million

0.01%

Global Sukuk Issuances By Currency (Jan 2001 - 1Q 2012)

SOURCE: IIFM SUKUK ISSUANCE DATABASE

3Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

BahrainUSD 11,455 Million

3.39%Brunei Darussalam USD 2,965 Million

0.88%

Gambia USD 49 Million

0.01%Germany USD 123 Million

0.04%

Indonesia USD 11,948 Million

3.54%

IranUSD 198 Million

0.06%

Japan USD 100 Million

0.03%

JordanUSD 119 Million

0.04%

Kuwait USD 2,355 Million

0.70%

MalaysiaUSD 213,250 Million

63.16%

PakistanUSD 5,781 Million

1.71%

Qatar USD 11,783 Million

3.49%

Saudi ArabiaUSD 24,532 Million

7.27%

Singapore USD 192 Million

0.06%

Sudan USD 13,344 Million

3.95%Turkey

USD 450 Million0.13%

UAE USD 37,908 Million

11.23%

UK USD 271 Million

0.08%USA

USD 767 Million0.23%

YemenUSD 18.7 Million

0.01%

Global Sukuk Issuances By Country (Jan 2001 - 1Q 2012)

SOURCE: IIFM SUKUK ISSUANCE DATABASE

4Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

1 Year or LessUSD 109,410 Million

32.41%

2 to 5 yearsUSD 105,289 Million

31.19%

6 to 10 yearsUSD 66,382 Million

19.66%

11 to 15 yearsUSD 20,415 Million

6.05%16 to 20 years

USD 17,505 Million5.19%21 to 25 years

USD 5,639 Million1.67%

26 to 30 yearsUSD 6,560 Million

1.94%

31 to 40 yearsUSD 5,822 Million

1.72%

41 to 50 yearsUSD 586 Million

0.17%

Global Sukuk Issuances by Maturities(Jan 2001 - 1Q 2012)

SOURCE: IIFM SUKUK ISSUANCE DATABASE

5Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Breakdown of Total Global Sukuk Issuance by Issuer Status Sovereign, Quasi Sovereign & Corporate Issues by Volume – All Currencies (Jan 2001 – Dec 2011)

CorporateUSD 108,322

Million 50%

Quasi-SovereignUSD 7,313

Million3%

SovereignUSD 103,241

Million47%

Domestic SukukCorporate

USD 37,125 Million

65%

Quasi-SovereignUSD 6,078

Million11%

SovereignUSD 13,985

Million 24%

International Sukuk

SOURCE: IIFM SUKUK ISSUANCE DATABASE

6Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Structural Breakdown of Domestic Sukuk Issuance (% by Volume) Sovereign, Quasi Sovereign & Corporate Issues – All Currencies (Jan 2001 – Dec 2011)

HybridUSD 2,283

1%

Bai' Al Tawarruq Principle USD 49

0%

Investment / Al IstithmarUSD 8,978

4%

Exchangeable USD 408

0%

IjarahUSD 49,613

23%

Istisna‘aUSD 3,469

2%

MudarabaUSD 9,123

4%

Murabaha USD 83,456

38%

MusharakaUSD 44,413

20%

Salam USD 1,683

1%

WakalahUSD 2,125

1%

Bai' Bithaman AjilUSD 11,639

5%

Bai' Al Inah PrincipleUSD 1,637

1%

SOURCE: IIFM SUKUK ISSUANCE DATABASE

7Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Structural Breakdown of International Sukuk Issuance

(% by Volume)Sovereign, Quasi Sovereign & Corporate Issues – All Currencies (Jan 2001 – Dec 2011)

Exchangeable USD 6,190

11%

IjarahUSD 25,168

44%

MudarabaUSD 4,725

8%

MurabahaUSD 1,243

2%

MusharakaUSD 9,364

16%

SalamUSD 1,990

4%

WakalahUSD 4,454

8%

Al Wakalah Bel-Istithmar

USD 1,2012%

Hybrid USD 2,854

5%

SOURCE: IIFM SUKUK ISSUANCE DATABASE

8Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Sukuk - Rate of ReturnIssue Date Issuer Issuing

CurrencyAmount

(USD Millions)Issue Type Rate of Return per

annum

24 Nov 2011 Abu Dhabi Islamic Bank USD 500.00 Corporate 3.78 %

22 Nov 2011 Government of Bahrain USD 750.00 Sovereign 6.27 %

06 July 2011 Government of Malaysia USD 800.00 Sovereign 4.65 %

06 July 2011 Government of Malaysia USD 1200.00 Sovereign 2.99 %

31 Oct 2010 Abu Dhabi Islamic Bank, UAE USD 750.00 Corporate 3.75 %

25 Oct 2010 Islamic Development Bank USD 500.00 Quasi-Sovereign 3.55 %

05 Oct 2010 Qatar Islamic Bank USD 750.00 Corporate 3.86 %

01 Sep 2010 Celcom Transmission Berhad, Malaysia RM 572.00 Corporate 5.50 %

10 Feb 2010 Government of Indonesia IDR 862.00 Sovereign 8.70 %

07 Jan 2010 Dar Al Arkan, Saudi Arabia USD 450.00 Corporate 10.75%

27 Nov 2009 General Electric US USD 500.00 Corporate 3.4%

24 Sep 2009 Government of Bahrain BHD 437.80 Sovereign 3.75 %

09 June 2009 Government of Bahrain USD 750.00 Sovereign 6.25 %

14 May 2009 Government of Malaysia RM 1420.80 Sovereign 5.00 %

23 April 2009 Government of Indonesia USD 650.00 Sovereign 8.8 %

16 March 2009 Panerbangan Malaysia Berhad, Malaysia RM 405.80 Quasi-Sovereign 3.85 %

25 Feb 2009 Government of Indonesia IDR 464.50 Sovereign 12.00 %

13 Sep 2007 Government of Malaysia RM 1060.61 Sovereign 3.58 %

05 June 2007 Silterra Malaysia Sdn. Berhad, Malaysia RM 529.00 Corporate 3.90 %

12 March 2007 Rantau Abang Capital Berhad, Malaysia RM 606.06 Corporate 4.10 %

29 Sep 2006 Khazanah Nasional Berhad, Malaysia USD 750.00 Corporate 5.07 %

02 June 2006 Aaber Petroleum Investment Company, UAE USD 460.00 Corporate 6.89 %

11 June 2005 Islamic Development Bank USD 500.00 Quasi-Sovereign 3.74 %

9Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Where to Expect New Growth

New Entrants , Africa, Indonesia, Oman, Saudi Soviet Block , North America and Australasia Takaful & Pension Investors

Government Initiatives Local Currencies to Expand

Yield CurveReserve Benefit

Collateralised Funding Repo Alternative Innovation & Expansion of Asset Type (Local Currency Equity Linked , Real

Asset Backed Sukuk)

10Conference on the Role of Sukuk in Development, 18th May 2012, Istanbul

Thank you

www.iifm.net