Global sukuk issuance to reach about $160bn-$170bn in 2024

Global sukuk issuance to reach about $160bn-$170bn in 2024

Muscat: Global sukuk issuance will reach about $160 billion-$170 billion in 2024, from $168. 4 billion at year-end 2023 and $179. 4 billion in 2022, according to a new report. "Better visibility on the medium-term trajectory of interest rates, particularly toward the end of 2023, benefited foreign currency-denominated sukuk issuance, which increased by a third in 2023, compared with 2022," S&P Global Ratings said. "We expect interest rates will remain broadly supportive in 2024. Although the Fed might cut interest rates later than markets expect, financing needs in core Islamic finance countries remain high, given ongoing economic transformation programmes," the rating agency said. "It is also worth noting that Saudi Arabia and its Vision 2030 programme boosted issuance in 2023 and will continue to do so in 2024," S&P Global Rating added. The rating agency further said that another area of strong growth is sustainable sukuk, whose issuance volumes continued to increase in 2023, albeit from a low base. As Islamic finance remains concentrated in oil exporting countries that aim to reduce their carbon footprints, S&P Global Rating expects the increase in sustainable sukuk issuance will continue. "Similarly, we think digitalisation could unlock some opportunities as it could streamline sukuk