The secondary market especially, has seen a hive of activity with total trading volume reaching USD 2.23 billion as at the end of last year, which is the highest we have seen on an annual basis since inception

Kuala Lumpur, Malaysia – 16 January 2023

The International Islamic Liquidity Management Corporation (“IILM”), an international organisation that develops and issues short-term Shari’ah-compliant financial instruments, is pleased to announce the top three most active Primary Dealers for the IILM Ṣukūk Programme for 2022.

Based on the total amount allocated at primary level as of end December 2022, namely a total of 37 Ṣukūk issued for a cumulative amount of USD 13.88 billion, the top three Primary Dealers are:
1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Maybank Islamic Bank

For Primary Dealer activity and footprint in the secondary market, based on the total trading volume of USD 2.23 billion as of end December 2022, the top three Primary Dealers are:
1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Al Baraka Turk

Dr Umar Oseni, Chief Executive Officer of the IILM, said: “The steady growth of the cross-border Islamic liquidity management sector would not have been made possible without the solid participation of our Primary Dealer network. The secondary market especially, has seen a hive of activity with total trading volume reaching USD 2.23 billion as at the end of last year, which is the highest we have seen on an annual basis since inception. I therefore would like to congratulate the top ranked Primary Dealers for their continued contribution to the sector, and we look forward to achieving more milestones in 2023 through building stronger partnerships with our supportive stakeholders.”

“Kuwait Finance House (“KFH”) is extremely delighted to be recognised as the IILM’s top Primary Dealer in the primary rankings as well as the secondary market for a second year in a row. Being the first Primary Dealer to achieve this unprecedented feat reaffirms the bank’s commitment and key role in activating, developing and distributing the IILM’s ‘A-1’ and ‘F1’ rated Ṣukūk programme to a wide base of investors globally. KFH believes that the IILM’s Ṣukūk programme, which accounted for 39% of the total global USD Sukuk issuances in 2022, is a critical component in facilitating cross-border liquidity management among Institutions offering Islamic Financial Services (“IIFS”). KFH will continue to support the IILM’s objectives for the benefit of the wider financial stability within the Islamic finance ecosystem,” said Khalid AlRukhayes, Executive Manager – Capital Market, of KFH.

“At First Abu Dhabi Bank (“FAB”), we aim to deliver consistent market-leading services that resonate strongly with the economies and sectors where we operate. Our strong IILM Primary Dealers ranking highlights the depth of our industry expertise in Islamic finance and also the level of trust that our customers place in us to be their financial partner. As an organization, we have also been quick to place innovation, sustainability, and customer centricity at the heart of everything that we do – and this acknowledgement reflects the success of this strategy as well as the hard work and dedication of our Global Markets team in bringing it to life, in partnership with key market players such as the IILM. We look forward to our continuous and strong partnership with the IILM team,” said Nadine Windsor, Managing Director – Head of Fixed Income Trading – Global Market of FAB.

“Maybank Islamic is pleased to be recognised as the top three Primary Dealer for the primary market. The IILM’s short-term Ṣukūk is a unique product in the Islamic market that fills in the gaps of liquidity management instruments, and we look forward to further collaboration with IILM to enhance international and cross-border transactions,” said Dato’ Mohamed Rafique Merican, CEO of Maybank Islamic.

“Al Baraka Turk is honoured to be among the top ranked Primary Dealers in the secondary market, as we strive to meet the expectations of the market in providing suitable options for investors to manage their liquidity needs. This recognition will motivate us to continue playing a key role in the development of the global Ṣukūk market,” said Reha Çetindağ, Head of Fixed Income Desk of Al Baraka.

The ranking assessments take into account key aspects of Primary Dealers’ role in distributing the IILM Ṣukūk at primary level by reaching out to a broad investor base and to ensure liquidity of the short-term Islamic instruments in the secondary market. Primary market appraisal is based on successful bids realised at auctions during the year, whereas secondary market activity is ranked based on turnover and percentage contribution in secondary market.

Since 2013, the IILM has published the league table of top three most active Primary Dealers at primary and since 2019 at secondary market.

The IILM Short term Ṣukūk programme is rated “A-1” by S&P and ‘F1’ by Fitch Ratings. The total outstanding of the IILM Ṣukūk stands at USD 3.51 billion, with a Shari’ah tradability ratio of 79% tangible assets as of today.

For the full participation in auctions and primary allocations, the 2022 ranking of the Primary Dealers is as follows:

1. Kuwait Finance House
2. First Abu Dhabi Bank
3. Maybank Islamic Bank
4. Boubyan Bank
5. Standard Chartered Bank
6. CIMB Islamic Bank
7. Abu Dhabi Islamic Bank
8. Dukhan Bank
9. Al Baraka Turk
10. Qatar Islamic Bank