Market Conditions Will Remain Supportive for Sukuk Issuance in 2H 2021: S&P Global Ratings

With low interest rates and abundant liquidity, S&P Global Ratings believes that market conditions will remain favourable for Sukuk issuance in the second half of 2021 (2H 2021). This is founded on the expectations that most Islamic finance countries would continue vaccinating their populations and oil prices would stabilise at about USD 65 per barrel for 2021. Sukuk issuance totalled USD 90.6 billion in the first half of 2021 (1H 2021), higher than the USD 86.4 billion during the same period in 2020.

Why it Matters?

Sukuk issuance volumes rose 5% (20% including primary issuances only) in 1H 2021, on the back of low interest rates, strong liquidity, and some issuers returning to the market. More traditional risks such as oil price volatility, geo...