MANAMA : THE demand for sukuk will remain strong across the globe and as such, new markets that are traditionally not partial towards Islamic finance may also issue sukuk as a fund-raising tool. “Sukuk has proven to be the go-to fund-raising instrument of choice and is available to a bigger pool of investors in comparison to a conventional bond,” said International Islamic Financial Markets chief executive officer Ijlal Ahmed at the 20th World Islamic Banking Conference (WIBC) being held at the Gulf Convention Centre in Bahrain yesterday. “Countries that are not traditionally Islamic, such as those in the African region, are tapping the sukuk market. “Most notably, the United Kingdom recently issued its debut sovereign sukuk. Thus, we will definitely see a shift in geographical issuance as sukuk gains popularity.” Ijlal later said in an interview with Business Times that Malaysia will remain at the forefront of sukuk issuance despite the expected geographical shift. “Within the short- to medium-term, Malaysia will remain the choice domicile for Islamic papers, given its developed and sound market. Investors are eager to tap the sukuk market but they’d rather tap one that has already proven itself, and that’s Malaysia .” From 2001 to November 2013 , the total amount of international sukuk issuance reached its peak in 2012 at US$20.2 billion ( RM65 billion ), which is higher than 2007’s issuance of US$13.9 billion . Things were not always rosy as the 2008 financial crisis impacted the market. “From 2001 to 2007, the sukuk industry witnessed a record growth rate, from a mere US$425 million in 2001 to US$13.9 billion in 2007. However, 2008 came as a reality check for all markets and players, which reshaped the priorities of governments, banks, issuers and investors,” said Ijlal. He is optimistic that the year-end global sukuk issuance, especially in December, will boost the amount beyond last year’s US$20.2 billion , noting that Malaysia Building Society Bhd’s recent RM3 billion dual-covered sukuk issuance has contributed greatly to this increase. “With some new issuances in the pipeline this December, I believe we can break the US$20.2 billion mark.” The ringgit remains at the forefront of sukuk issuances at 67 per cent, while the US dollar is at 16 per cent, the Saudi riyal is at four per cent and the Indonesia rupiah is at three per cent. This year’s WIBC has seen more than 1,300 delegates from 50 countries. It features 90 speakers from the industry and is supported by the Central Bank of Bahrain and the Economic Development Board of Bahrain .