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

The sukuk market is expected to continue its growth trajectory long-term, Moody's said. Volumes will be bolstered by an acceleration in issuance of instruments like green sukuk, low penetration and new issuers.

DUBAI: 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 $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%.