Moody’s forecasts steady sukuk issuance for rest of 2018

Moodys_websiteRating agency Moody’s expects global sukuk issuance to reach $90-$100 billion by the end of 2018, keeping it in line with 2017 levels. "Over the long term, we expect sukuk issuance volumes to continue to grow as governments across the core Islamic finance markets shift their financing mix towards a combination of conventional and Islamic instruments," said Nitish Bhojnagarwala, a Vice President and Senior Credit Officer at Moody's. Its forecast of steady issuance comes despite a 12% decrease in the first half of 2018 to $55 billion, which it puts down to lower issuance volumes in the GCC region. However Moody’s states that the July 2018 launch of a primary dealers’ scheme for government bonds issued on the Saudi stock exchange (Tadawul) may help to boost volumes. The rating agency’s report also states that the issuance of the world’s first green sukuks in Malaysia and Indonesia could encourage similar involvement from GCC governments looking to diversify their economies away from the oil industry. ©2018 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Jan 04, 2019

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...


ROUNDTABLE: Hooked to the global caravan

Jan 04, 2019

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.

MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.