Sukuk issuance in GCC to fall 5% this year: Moody’s

Sukuk issuance in GCC to fall 5% this year: Moody’s

Sukuk issuance in the GCC is set to fall 5% this year to about $170 billion because of the coronavirus crisis, after four years of rapid growth, said Moody's in a new report."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.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