Economic Recovery Expected to Further Drive Decline in GCC Sukuk Issuance in 2022: Moody’s

Sukuk issuance is expected to decline on the back of higher oil prices in 2022 and lower needs for financing in the Gulf Cooperation Council (GCC), resulting from economic recovery, according to Moody’s Investors Service (Moody’s).

Why it Matters?

In 2021, Sukuk issuance saw a 12% drop to USD 181 billion as economies gradually recovered and sovereign funding needs declined in the GCC and Indonesia, while a further drop is forecast in issuance activity for 2022 to USD 160 - USD 170 billion. A boost is expected in credit growth and demand for Shariah-compliant products in key Islamic finance markets through this recovery along with anticipations for Islamic banks’ assets to continue growing and outperforming their conventional peers, a...