Moody’s: Global Sukuk Issuance to Decline 5% in 2020

August 07, 2020

Moody’s Investors Services (Moody’s) is expecting global Sukuk issuance to contract by 5% to approximately USD 170 billion in 2020, due to the COVID-19 pandemic, following four years of rapid growth.

According to a report announcement released by the ratings company, the total issuance in the first half of 2020 declined by 12% to USD 77 billion, compared to the same period last year, following a drop in activity from Malaysia and Indonesia. Meanwhile, issuance volumes in southeast Asia declined by 25%, whereas issuances in the Middle East increased by 7%. Despite the overall decline, 2020 is expected to witness the second highest ever Sukuk issuance in total, following a 36% rise in 2019.