Moody’s: Global Sukuk Issuances to Increase to USD 75 Billion in 2020

In a report issued by Moody’s Investor Service (Moody’s), it has been forecasted that global long-term sovereign Sukuk issuance will increase by a moderate 6% to reach USD 75 billion in 2020.

With the on-going COVID-19 pandemic and lower oil prices, it is expected that fiscal deficits of countries such as Saudi Arabia, Bahrain and Oman, as well as Indonesia and Malaysia, are expected to widen.

Moody’s states that these countries are expected to resort to Sukuk for fund-raising to bridge their fiscal deficits.

In 2019, Sukuk issuance by GCC governments increased 13.5% despite a drop in their combined fiscal deficits to USD 43 bi...