Global Sukuk issuance to stop growing for first time in five years - Moody's

FILE PHOTO: A general view of the Petronas Twin Towers and Kuala Lumpur skyline. Moody's sees total sukuk issuance this year between US$190bil and US$200bil from a record US$205bil last year, driven by strong issuance in Malaysia and Indonesia. - IZZRAFIQ ALIAS/The Star

DUBAI (Reuters) - Global sukuk issuance will be flat or slightly lower this year after five straight years of strong growth as higher crude prices have reduced oil-rich Gulf governments' financing needs, Moody's said on Tuesday.

The expected volume is despite issuance increasing in the first half of the year by 3% to US$102 billion, driven by sales from Malaysia and Indonesia. Issuance volume in Southeast Asia, which made up more than half of total issuance in the first half, increased 22% while in the Gulf it declined 19%.