Demand for Islamic Finance to Boost Funding and Expansion of Shariah-Compliant Multilateral Development Banks: Moody’s

A report by Moody’s Investors Service (Moody’s) has said that the growth of Islamic finance alongside rising demand for highly rated Sukuk will place Shariah-compliant multilateral development banks (MDBs) favourably. MDBs are also positioned well to benefit from the rising focus on environmental, social and governance (ESG) themes, in addition to sustainable investing, as Islamic principles forbid investment in certain areas such as alcohol, gambling and tobacco.

Why it Matters?

Continuing growth in global Islamic banking will continue to boost demand for Sukuk from Islamic MDBs. A shortage of high-quality, liquid, Shariah-compliant assets has been a roadblock for Islamic lenders, and it has created &ldq...