Moody’s Investors Service predicts that state sukuk issuance to recover in 2019 and surpass record highs in 2020, following a decline of oil prices in 2018, said senior analyst and Vice President Moody’s Alexander Perjessy, on Tuesday (Feb 19).
“We expect global sukuk issuance to increase to US$87 billion by 2019, and rise towards US$100 billion by 2020, from US$78 billion in 2018,” Perjessy said in a report.
According to Moody’s, this recovery will be driven by a combination of various government commitments for further development of the sukuk market, higher sukuk refinancing needs and our expectation of a higher budget deficit for major sovereign sukuk issuers in 2019-2020.
Moody estimates that the three largest issuers, Malaysia, Saudi Arabia and Indonesia, will gradually increase their share of sukuk in financing the fiscal deficit, which further supports market growth prospects.
