IslamicFinance.de

Moody's estimates that total Sukuk issuance will reach around $95 billion by the end of this year, after more than $85 billion in 2016, including more than $50 billion of Sukuk issuance by sovereigns. According to Moody's Vice President Christian de Guzman, sovereign Sukuk issuance volumes will continue to grow in 2018 as governments look to diversify their financing mix and satisfy the liquidity needs of Islamic retail banks. A number of factors will support sovereign Sukuk issuance, including high borrowing needs for GCC sovereigns, which Moody's expects to reach around $148 billion in 2018. Malaysia remains the largest Sukuk market with an estimated 43% of total sovereign Sukuk outstanding, followed by Indonesia with 30%. Indonesia's issuance will likely grow with the government's efforts to develop the Islamic finance sector.