Despite some headwinds, long-term prospects for the sukuk industry remain promising as regulators continue to build and strengthen their frameworks to minimize barriers in the market and deepen liquidity. Standard & Poor's Ratings Services (S&P) also said in a report that after a mixed 2013, the global sukuk market looks promising in 2014. Malaysia already benefits from a broad sukuk investor base and liquid debt market. So the increased interest from issuers, notably in the Middle East and Asia , in tapping the Malaysian ringgit and dollar market should continue over the next few years, as Malaysia cements its leading position in the industry, arabnews.com wrote. "After a slowdown in 2013, with sukuk volumes declining by 13 percent, we anticipate that the sukuk industry will expand again in 2014, partly driven by corporate and infrastructure issuers in the Persian Gulf," said Standard & Poor's credit analyst Samira Mensah . "What's more, total issuance will exceed $100 billion for the third year in a row if yields remain attractive for issuers. And, after weakening in 2013, we believe issuance could pick up again in Malaysia in 2014 as its investment program resumes," Mensah added. Now that Malaysia is adopting private sector investment, non-sovereign issuance could accelerate in 2014-15, continuing the trend witnessed in 2013 at a global level.
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