Kuala Lumpur
Islamic finance is set to keep expanding in 2020 and beyond as the Gulf Cooperation Council (GCC) countries and Malaysia help drive growth in Shariah-compliant financial products, even though Covid-19 may disrupt sukuk issuance, said Moody’s Investors Service. In a report today, the ratings agency said Saudi Arabia would remain the world’s largest Islamic banking market, while the sector would continue to expand rapidly in Malaysia. “We expect sukuk issuance to remain stable at around US$180 billion this year, and the takaful insurance market will see steady growth as insurance premiums pick up in newly penetrated markets,” said Moody’s vice-president — senior credit officer Nitish Bhojnagarwala. However, downside risks are rising because of the Covid-19 pandemic, as prolonged market disruption could dissuade issuers from coming to market, he added.—Bernama
