Sukuk Offerings See Record Year Start Globally on the Back of 40% Increase in Oil Prices
April 04, 2022 | Updated at April 04, 2022
Global Sukuk offerings have witnessed the busiest start of a year on record with the sales of new sukuk set to mature in at least a year nearing USD 24 billion in 2022. The high price of oil was cited as a driver of the vibrant issuance as activity was led by Saudi Arabia and Turkey, according to Bloomberg.
Why it Matters?
Investors in oil-producing countries, which represent some of Islamic finance’s biggest markets, saw cash influxes on the back of a 40% increase in oil prices in 2022. Shariah-compliant debt saw better performance than global bonds with investment-grade ratings, seeing only a 4% loss versus their 7% dive so far this year due to the United States raising interest rates which left fixed-income markets in upheaval. According to HSB...