Support of Gulf Governments Crucial to Ignite the Green Sukuk market; Leading Fitch Ratings Analyst

A leading analyst at Fitch Ratings agency has stated that the support of the Gulf government to establish infrastructure projects is crucial to tap into the true potential of the green and sustainable Sukuk market that doubled in growth in 2021.

Why it Matters?

The Shariah-compliant sustainable sector has grown expeditiously by rising in its issuances to USD 6 billion in the first half of 2021 from USD 3 billion in 2020. Despite this Bashar Al Natoor, the global head of Islamic finance at Fitch Ratings agency, notes that the rise in green and sustainable Sukuk still amounts to 2.5% of total outstanding Sukuk and more progress is to be made on the regulation and strategic front to ignite the Sukuk market. Currently, many governments within the Gulf Coo...