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Tribune News Network
Doha
Global sukuk issuances surged by 36.1 per cent in 2021 to $252.3 billion and are expected to continue to grow this year, according to a new report from Fitch Ratings.
Robust Islamic investor appetite, a diversification in funding goals and Islamic-finance development agendas are expected to drive the growth of sukuk issuance in the region.
“Downside risk stems from higher oil prices reducing a number of sovereigns’ funding needs, AAOIFI [Accounting and Auditing Organisation for Islamic Financial Institutions] compliance complexities, traditional risks such as interest-rate rise, lower global investor appetite for emerging-market debt and political risk,” said Bashar Al Natoor, global head of Islamic finance at Fitch.
Central banks, governments and multilateral institutions dominated sukuk issuances in 2021. GCC countries, Malaysia, Indonesia, Turkey and Pakistan accounted for $230.2 billion of total deals.
Fitch report also said green and sustainable sukuk volumes rose 17.2 per cent annually in 2021 to $15 billion and the theme is likely to remain “prominent in 2022” as countries focus on cutting gas emissions to protect the environment.
Doha
Global sukuk issuances surged by 36.1 per cent in 2021 to $252.3 billion and are expected to continue to grow this year, according to a new report from Fitch Ratings.
Robust Islamic investor appetite, a diversification in funding goals and Islamic-finance development agendas are expected to drive the growth of sukuk issuance in the region.
“Downside risk stems from higher oil prices reducing a number of sovereigns’ funding needs, AAOIFI [Accounting and Auditing Organisation for Islamic Financial Institutions] compliance complexities, traditional risks such as interest-rate rise, lower global investor appetite for emerging-market debt and political risk,” said Bashar Al Natoor, global head of Islamic finance at Fitch.
Central banks, governments and multilateral institutions dominated sukuk issuances in 2021. GCC countries, Malaysia, Indonesia, Turkey and Pakistan accounted for $230.2 billion of total deals.
Fitch report also said green and sustainable sukuk volumes rose 17.2 per cent annually in 2021 to $15 billion and the theme is likely to remain “prominent in 2022” as countries focus on cutting gas emissions to protect the environment.
