Fitch Ratings: Global Sukuk Issuance Rebound; Primary Sukuk Markets to See Further Activity in 2020

Fitch Ratings (Fitch) reported that global Sukuk issuance saw a rebound in May and June 2020, following the primary market shut down due to uncertainties caused by COVID-19. According to Fitch, Sukuk issuance with a maturity of more than 18 months from the Gulf Cooperation Council (GCC) region, Malaysia, Indonesia, Turkey and Pakistan amounted to USD 12 billion in the second quarter of 2020 (Q2 2020), up 42% quarter-on-quarter. Fitch also noted that the volume of outstanding Fitch-rated Sukuk totalled USD 114.5 billion at the end of Q2 2020.

As the effects of COVID-19 heightened globally, Sukuk issuance in March and April 2020 witnessed a sharp slow-down, reflecting wider financial market volatility. Fitch notes that this...