Global Sukuk Issuance to Increase to USD 257 Billion by 2027, Despite 2022 Slowdown
September 05, 2022 | Updated at September 05, 2022
Global Sukuk issuance is predicted to increase at a 6.8% compound annual growth rate in the next five years and is projected to reach USD 257 billion by 2027, despite the decline in 2022 caused by a global monetary tightening cycle, according to a new Refinitiv report.
Why it Matters?
Despite strong activity in the Sukuk market early in 2022 due to the high demand from foreign investors, international Sukuk issuance’s momentum began to decline in the January–June period. Among the factors contributing to this slowdown is lower government borrowing needs in the main Sukuk markets due to a rise in oil prices along with heightened global tensions and numerous impending rate hikes which are predicted to restrict issuance. However, sustained st...