Fitch Ratings Maintains Favourable Outlook on 2021 Global Sukuk Supply

As global issuers look to fund significant budget requirements and refinance maturing debt, Fitch Ratings (Fitch) expects global Sukuk supply to accelerate in 2021. This follows a resilient 2020, which saw Sukuk volumes similar to 2019 levels, despite the impacts of COVID-19. According to Fitch, diverse and innovative sustainable, green, transition and hybrid Sukuk are anticipated to continue attracting demand across a wide investor base.

Furthermore, Fitch notes that the resumption of diplomatic ties resulting in the easing of investment restrictions across the Gulf Cooperation Council region is also expected to contribute towards higher Sukuk volumes.

In particular, Fitch states that sukuk volumes out of Qatar are forecast to rise gradually with normalisation of rel...