IslamicFinance.de

According to Moody's Investors Service, the global sukuk market will continue to rebound from a sharp drop in volumes in 2015. Analysts estimate 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. Moody's Vice-President Christian de Guzman expects that 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. Sovereigns issued more than $40 billion of sukuk in the first eight months of the year. This represents a 50% increase compared to the same period last year. In 2017, market growth was driven by Saudi Arabia with a total issuance of $17 billion. Other countries with large fiscal deficits, such as Oman and Bahrain, will also contribute to the market's expansion.