IslamicFinance.de

S&P Global Ratings expects Sukuk issuance will remain muted over the next 6 to 18 months, with total issuance of US$50 bil to US$55 bil in 2016. The ratings agency explained that plummeting oil prices have not boosted sukuk issuance despite some commentators' expectations. Instead, total issuance actually dropped in 2015 compared with the previous year. S&P Global Ratings Global head of Islamic finance Mohamed Damak said while governments affected by the price drop are looking to spending cuts, their financing needs remain significant. At the same time, he believes the European Central Bank's quantitative easing programme and the entrance of a few new issuers to the Sukuk market will continue to support issuance volumes.