Momentum of Global Sukuk to be Sustained Amid Headwinds: Fitch

According to Fitch Ratings (Fitch), global Sukuk momentum is projected to persist over the medium term, owing to robust investor interest, funding diversification and refinancing needs. Bashar Al-Natoor, Global Head of Islamic Finance at Fitch, noted that there would, however, be headwinds.

Why it Matters?

Al-Natoor remarked that the supply-demand imbalance of Sukuk would continue to be a factor for growth but that this would not be without challenges. Additional Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) compliance standards for Sukuk, as well as lower borrowing needs and fiscal deficits for some Sukuk-issuing sovereigns due to higher oil prices were noted as pullbacks.

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