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null Global sukuk issuance to fall to US$160b in 2022 amid high interest rates

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Global sukuk issuance to fall to US$160b in 2022 amid high interest rates

14 Sep 2022 | Wednesday Source: The Edge Markets

Global sukuk issuance is expected to fall to US$160 billion to US$170 billion this year, down from US$181 billion in 2021 and a record US$205 billion in 2020, according to Moody’s Investors Service.

Issuance fell 10% to US$92 billion in the first six months of 2022, from US$102 billion a year ago.

In a report, Moody’s said global sukuk issuance is expected to decline further in 2022, as major sukuk-issuing sovereigns' improved fiscal positions and higher interest rates pressure issuance activity.

"We expect gross sukuk issuance of US$70 (billion)-80 billion in the second half of the year. While issuance in Southeast Asia is likely to improve, we do not expect the Gulf Cooperation Council (GCC)'s strong performance in the first half of the year to continue into the second half," it added.

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