Global Sukuk Issuance to Witness Moderate Increase in 2023 Despite Market Volatility: Fitch
January 13, 2023
Global Sukuk issuance is predicted to increase at a moderate rate in 2023 despite market instability and continue to be an important source of funding in key Islamic finance markets, according to Fitch Ratings on the 11th of January 2023.
Why it Matters?
Sukuk issuance in key markets decreased by 7.9% in 2022 to USD 244.3 billion due to high oil prices, increasing interest rates, and geopolitical issues. Despite this decrease, Sukuk issuance still surpassed bond issuance in these key markets. Medium-to-long term outlook is positive due to strong demand, refinancing needs and government support, but potential challenges could come from rising interest rates and political risk may arise. Further, issuing Sukuk may be more difficult than bonds or loans du...