Sukuk Market Growth Drops Owing to High Oil Prices: Moody’s

According to a report by Moody’s Investors Services (Moody’s), following record issuance in 2020, high oil prices have pushed down demand in the Sukuk market.

Why it Matters?

Moody’s elaborated that Gulf Cooperation Council governments no longer need to depend on Sukuk to raise cash, as the oil market is now strong. However, it noted that Sukuk activity had been “solid” in the first half of 2021 (1H 2021).

Details

In 1H 2021, around USD 102 billion worth of Sukuk was issued. Sukuk issuance are expected to slide down to USD 90-100 billion in 2H 2021. Despite this shrinking trend, the future of the Sukuk market is solid, and green and sustainable Sukuk are expected to be the drivers...