Global outstanding sukuk volume break the $800bn barrier

Global outstanding sukuk volume break the $800bn barrier

The total volume of outstanding sukuk volumes exceeded $800bn for the first time in Q2 2023, Fitch Ratings said, while issuance is expected to slow in the third quarter coinciding with summer vacations in many countries. Issuance in core Islamic finance markets across the Middle East, Africa and South Asia region jumped by 10 per cent quarter-on-quarter (QoQ) to $49.1bn while bond issuance dropped by 4.8 per cent. “H1 2023 was a busy period for sukuk issuance on the back of issuers’ funding needs and diversification attempts as well as initiatives to develop the local debt capital markets,” said Bashar Al-Natoor, global head of Islamic Finance at Fitch Ratings. Furthermore, global sukuk markets engaged with a diverse range of issuers, currencies and geographies in addition to greater issuance volumes. Global Islamic bond issuance is expected to plunge in Q3 2023 before picking up pace in the last quarter of the year. The majority of Fitch-rated outstanding sukuk were investment grade at 79 per cent, with 12.6 per cent of issuers having a positive outlook and 77.5 per cent having a stable outlook. Similarly, outstanding sustainability linked sukuk reached $30.5bn p 22.5 per cent QoQ. The UAE issued its debut dirham-denominated