Sovereign solid issuance in the GCC and Southeast Asia is expected to boost this year’s global sukuk issuance to $200 billion to $210 billion, surpassing the slightly under $200 billion total from 2023, according to Moody’s Ratings.
According to Moody’s analysts, the sukuk market has significant growth potential in the upcoming years, helped along by the entry of new issuers who will cater to the growing demand for sukuk assets.
Since the governments in the region are still working to diversify their economies away from the oil industry, we anticipate that GCC issuance will continue to be robust. According to them, GCC issuance increased 138% in the first half of the year to $69.2 billion.
Although sukuk activity in the UAE doubled to $8.6 billion annually due to higher overall volumes, the GCC’s robust first-half issuance was primarily driven by Saudi Arabia, which accounted for 37% of all issuance, and Malaysia, which issued close to 30% of all sukuk.
The GCC countries’ issuance will continue to be robust despite a slowdown in the second half of the year to approximately $80 to $90 billion, as their governments continue to seek ways to diversify their economies away from the oil industry. According to Abdulla AlHammadi, assistant vice president and analyst at Moody’s Ratings, “those looking to issue sustainable sukuk, those looking to diversify funding sources and investors, or those returning to the market after delaying issuance will drive issuance by companies and financial institutions.
Also Read:
The Non-Oil Economy of Saudi Arabia Expanded by 4.9% in Q2: GASTAT
The Future Of High-Speed Internet With VSL Networks LLP: Tarik Al Mamun Chowdhury
