Moody’s, the credit rating agency, said Tuesday that the global sukuk market is expected to see long-term momentum, supported by new issuers and low penetration rates for this financial instrument.
In a report seen by Al Arabiya.net, he added that the sukuk market has been strong over the past six months questyear and followed the issue record by sukuk for 2020.
Ashraf Madani, vice president and analyst senior of Moody’s, said sukuk issues will remain stable questyear or slightly lower than last year, as high oil prices will reduce the sovereign financial needs of the Gulf countries.
He explained that Moody’s expects the total number of long- and short-term sukuk offers in 2021 to reach between $ 190 and $ 200 billion, after the level. record in 2020 of 205 billion dollars.
In its report, the agency indicated that improving economic conditions and increased funding needs will support issuance activity in Southeast Asia and Malaysia will continue to dominate global sukuk issuance with assets denominated primarily in the local currency. .
Moody’s expects the sukuk market to maintain its long growth trend supported by new entrants, low penetration rates and innovative new Islamic products, such as green and sustainable sukuk.
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