The global Islamic finance industry will grow by 10-12 percent in 2021-2022 after slowing to 10.6 percent in 2020 (excluding Iran) as Islamic banking assets grow in some GCC countries, Malaysia, and Turkey, and new sukuk issuances exceed maturing ones, S&P Global Ratings said in a report.
The ratings agency said it expects financing growth in Saudi Arabia to remain strong, fueled by mortgages and by corporate lending as the country implements some of its Vision 2030 projects. “We also expect some growth in Qatar supported by investments related to the upcoming World Cup, and to a lesser extent the United Arab Emirates (UAE) where the Dubai Expo is likely to help boost economic activity,” S&P said in a report issued Monday.
Malaysia and Turkey will also continue to grow, although Turkey’s growth will be at a slower pace and driven primarily by public sector participation banks.
On the sukuk front, S&P Global Ratings forecasts total sukuk issuance of about...read more...