Moody’s: GCC’s Sukuk Issuance Plummet 5 Percent this Year

  • Date: 07-Aug-2020
  • Source: Al Bawaba
  • Sector:Economy
  • Country:GCC
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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