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.

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.