Dubai
Global sukuk issuance in 2020 is expected to surge further on the back of strong growth in 2019 supported by continued demand for issuance from GCC countries and core Islamic finance markets, according to rating agency Standard & Poor’s. “Although global financial conditions should remain highly accommodative next year, we don’t expect additional easing by the US Federal Reserve and only a marginal deposit rate cut by the European Central Bank in 2020. In addition, more than $10 trillion of debt has negative yields. Therefore, we think that issuers with a good credit story will continue to tap the market with relative ease,” said Mohamed Damak, Senior Director and Global Head of Islamic Finance at S&P. Total sukuk issuance increased to $162 billion in 2019, compared with $129 billion in 2018. Sukuk issuances from Malaysia, Saudi Arabia, Indonesia, Turkey, and Qatar supported the activity of the market. S&P analysts anticipate total sukuk issuance of $160 billion to -170 billion in 2020, including $40 to $45 billion of foreign currency issuance.—Gulf News
