Global outstanding sukuk market surged to $823 billion by Q3-23: Fitch’s Global Head of Islamic Finance

Global outstanding sukuk market surged to $823 billion by Q3-23: Fitch’s Global Head of Islamic Finance

DUBAI/WAM Bashar Al-Natoor, the Global Head of Islamic Finance – Managing Director, Fitch Ratings, has projected a sustained uptrend in global sukuk issuance, with the market soaring to US$823.4 billion at the end of Q3-23, reflecting a robust 9.8% annual growth. Speaking to the Emirates News Agency (WAM), Al-Natoor attributed the surge to several key ...

DUBAI/WAM

Bashar Al-Natoor, the Global Head of Islamic Finance – Managing Director, Fitch Ratings, has projected a sustained uptrend in global sukuk issuance, with the market soaring to US$823.4 billion at the end of Q3-23, reflecting a robust 9.8% annual growth. Speaking to the Emirates News Agency (WAM), Al-Natoor attributed the surge to several key factors driving the adoption of sukuk: a) filling budget gaps, especially in non-oil-rich countries; b) diversifying funding options; c) establishing flexible financial tools for institutions; d) expanding liquidity sources for banks; and e) offering corporates and projects alternatives to traditional bank loans.

He also categorised nations based on their financing and refinancing needs or their aspirations to enhance and diversify their debt markets. While higher oil prices have bolstered their finances, GCC countries are proactively issuing sukuk not just for immediate needs, but to achieve strategic goals like building robust debt market