Global Long-Term Sukuk Issuance Experience 22% Drop in 2021 Prompted by Economic Recovery: Moody’s 

The global sovereign long-term Sukuk issuance has contracted by 22% to USD 88 billion in 2021, including those by the multilateral banks, according to Moody’s Investors Service (Moody’s). A potential decline in issuance by an additional USD 73 billion in 2022 and USD 75 billion in 2023 is possible as economies rebound.

Why it Matters?

The rating agency stated that the decline is a sign of improved economic recovery, strengthening fiscal positions and reducing gross financing needs for key Sukuk issuers. A supportive macroeconomic environment, higher oil prices, lower Covid-related spending, and accelerated economic activity also contribute to the decrease. Gulf Cooperation Council (GCC) economies are to grow at their fastest pace in more th...