Saudi Islamic finance growth strong as social issuance set to rise: S&P

SourceArab News
SectorFinancial Markets
CountrySaudi Arabia

DUBAI: Global Islamic finance is expected to grow by 10 to 12 percent over the next year on the back of stronger sukuk issuances and continued industry standardization, S&P Global said in a report. Financing growth in Saudi Arabia will remain strong, S&P said, fueled by mortgages and corporate lending. It also expects some growth in Qatar supported by investments related to the upcoming World Cup, “and to a lesser extent the UAE where the Dubai Expo is likely to help boost economic activity,” it added.

The report also noted a potential rise in the issuance of social Islamic finance instruments and green sukuk, as companies become more conscious of their environmental, social, and governance (ESG) values. The Jeddah-based Islamic Development Bank issued a $1. 5 billion sustainable sukuk in 2020 and another $2. 5 billion instrument in 2021. “They (social issuances) show that the pandemic has presented an opportunity to put the social element back into Islamic more...