Moody’s: GCC’s Sukuk Issuance Plummet 5 Percent this Year
Moody’s: GCC’s Sukuk Issuance Plummet 5 Percent this Year
"The decline will be partly limited by the financing needs of GCC countries because of lower oil prices and the pandemic," said Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody's. "We expect issuance will rally in the second half of the year to around $90 billion, led by sovereigns in the Gulf."
Key points:
“¢ Despite the decline, 2020 will still see the second highest sukuk issuance total ever, following a 36% increase in 2019.
“¢ Total issuance in the first six months of 2020 dropped to $77 billion, down 12% from the same period last year, as activity in Malaysia and Indonesia flagged.
“¢ Issuance in southeast Asia dropped by 25%, while volumes in the Middle East rose 7%.
“¢ Volumes are likely to rebound in the second half of 2020, as governments raise money