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Global sukuk issuance to hit up to $155bn in 2021: S&P

DUBAI, January 12, 2021

Global sukuk issuance will rise to about $140 billion–$155 billion this year from $139.8 billion in 2020, thanks to a recovery in issuance in Malaysia, Indonesia, and the GCC countries, said S&P Global Ratings in a new report.

Market conditions should remain buoyant throughout 2021, with record-low interest rates and abundant liquidity, it added.

“We also expect GDP growth in the core Islamic finance countries--the GCC countries, Malaysia, Indonesia, and Turkey--to recover from a sharp recession in 2020. We also assume that the price of oil will stabilize at about $50 per barrel in 2021. Together, these factors underpin a stronger performance by the global sukuk market in 2021 than in 2020,” the report said.

“However, downside risks for the core Islamic finance countries remain significant. The main risk is that further waves of COVID-19 and the requisite containment measures may harm countries' fragile economic recovery.

“Over the next 12-18 months, we could also see progress on a unified global legal and regulatory framework for Islamic finance, and may see some sukuk issuances that aim to tackle the social problems arising from the pandemic or support the energy transition,” it added. – TradeArabia News Service




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