IslamicFinance.de

According to Moody's Investor Service, sukuk issuance will stabilise after growing for four consecutive years, supported by the deficit financing needs of some GCC sovereigns, amid weaker oil prices and higher sukuk refinancing. Moody's expects sukuk issuance of around $180bn in 2020, after a 36% rise in 2019 to $179bn. Global sovereign sukuk issuance increased by 31% to $119bn in 2019, from $91bn in 2018. Moody's noted that downside risks are rising in the short term because of the fallout from the coronavirus outbreak, as prolonged market disruption could dissuade issuers from coming to market. Green sukuk will benefit from robust growth in institutional investor demand for environmental, social and governance (ESG) products, given the natural crossover of sustainable investing and Islamic finance.