High Interest Rates and Improved Fiscal Positions to Cause Decline in Global Sukuk Issuance to Over USD 170 Billion in 2022: Moody’s 

Global sukuk issuance is anticipated to witness a decline from USD 181 billion in 2021 to between USD 160 billion and USD 170 billion in 2022, according to Moody’s Investors Service.

Why it Matters?

The decline is anticipated since major sovereigns that issue Sukuk have improved budgetary circumstances as a result of higher oil prices and higher interest rates. Given the uncertainty of interest rates during the first half of 2022, some issuers, including corporations and financial institutions, have delayed their Sukuk sales. As major central banks continue to raise interest rates to fight inflation, this is anticipated to last through the second half of 2022. The robust demand for recent issuances, however, indicates that Sukuk's popularity and...