Sukuk Volumes in 2020 Expected to Remain Resilient Despite COVID-19 Stress: Fitch

The volumes of Sukuk issuances in 2020 are expected to remain similar to 2019 levels, despite the unexpected pressures brought about by the COVID-19 pandemic, according to Fitch Ratings (Fitch), in a recent commentary. Furthermore, Fitch anticipates that Sukuk supply will increase with rising funding requirements as market conditions recover further.

According to Fitch, sovereigns will remain the largest contributors to overall Sukuk volumes in 2020, amidst increased borrowing requirements and widening fiscal deficits attributed to economic disruptions by COVID-19 as well as reduced oil prices. In addition, issuances from corporates and financial institutions are expected to increase as they take advantage of lower fund...