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THE global sukuk issuance for next year is expected to surpass the record year 2007, with Malaysia continuing to be a major sukuk market, according to CIMB Islamic.

CIMB Islamic chief executive officer Badlisyah Abdul Ghani said the growth will be driven by positive sentiment in the market and the corporate financing needs.

"There is a consensus in the market that 2011 will be a record year... it (the issuance) will be more than 2007," he said after the the listing of Islamic Development Bank (IDB)'s US$3.5 billion sukuk programme on Bursa Malaysia in Kuala Lumpur yesterday.

CIMB Islamic is the adviser for the listing exercise.

It was earlier reported that total global Islamic bond issuance had reached US$31 billion (RM97.96 billion) in 2007 but dropped to US$14.1 billion (RM44.56 billion) in 2008 before rising to US$20.2 billion (RM63.83 billion) last year.

The first half of this year saw global sukuk issuance reached US$16.5 billion, (RM52.14 billion) compared with US$7.6 billion (RM24.02 billion) in the same period last year.

Badlisyah said there is greater confidence in the market now as investors have better clarity on the European debt crisis. More organisations will also go to sukuk market to raise fund next year to meet their financing needs.

"Malaysia will remain an important sukuk market," he added.

Malaysia is the world's largest sukuk market, accounting for nearly two-thirds of the global sukuk outstanding.

Meanwhile, IDB president Dr Ahmed Mohamed Ali said the multilateral development bank will continue to issue more sukuk in Malaysia's Islamic debt market.

He said although IDB has a strong capital base, it will continue to tap resources from the market as part of its strategy to ensure sustainability and increase diversity of its liquidity sources.

Ahmed, who is all praise for Malaysia's Islamic financial sector, said IDB is committed to going to the market more regularly in the near future.

He said proceeds from the newly listed US$3.5 billion multi-currency sukuk would be used for general corporate purposes, including financing projects in IDB member countries.

The sukuk programme, established via a special purpose vehicle, IDB Trust Services Ltd, is rated Aaa/AAA/AAA by Moody's, S&P and Fitch.

The IDB's US$3.5 billion Trust Certificate Issuance Programme is listed on Bursa Malaysia under an Exempt regime.

It is a shelf-listing - not to be quoted or traded on the exchange - to enhance the profile of the sukuk, thus provides greater visibility to the investors.

Under an Exempt Regime, trading will take place outside the exchange, which is on an over-the-counter basis.

With this listing, the value of Bursa Malaysia's sukuk listings reached US$27.6 billion, (RM87.22 billion) comprising 19 sukuk listed by 17 issuers. - By Hamisah Hamid