Sukuk Momentum to Stay Intact, Short-Term Headwinds to Persist

Sukuk momentum is expected to continue over the medium term supported by intact investor appetite, funding diversification and refinancing needs, Fitch Ratings says in a new report. 

“Sukuk supply-demand imbalance will continue to be a key growth factor but not without headwinds” said Bashar Al-Natoor, Global Head of Islamic Finance, Fitch Ratings. “These headwinds include additional AAOIFI-compliance complexities for sukuk, and reduced borrowing needs and fiscal deficits for some of the sukuk-issuing sovereigns due to higher oil prices.”

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