ESG-Linked Sukuk Set to See Fast Growth in 2022, Despite Softening of Broader Sukuk Market 

After a robust year for Environmental, Social, and Governance- (ESG) linked Sukuk, that saw a 17.2% volume expansion to USD 15 billion in 2021 led by the Gulf Cooperation Council (GCC), Malaysia, Indonesia, Turkey and Pakistan, the global ESG-related market is expected to still experience rapid growth in 2022 despite the moderation experienced in the broader market.

Why it Matters?

The expected slowdown in broader global Sukuk market issuance in 2022 is attributed to three main factors that include scarce and higher-priced global and regional liquidity, complexity in the issuance of Sukuk, and a slump in financing needs in core markets, such as the GCC due to the increase in global oil prices, according to a forecast by S&P Global Ratings (S&P). H...