DOHA: Global sukuk issuance is expected to moderate, settling at $185 billion in 2022, according to the 2022 Sukuk Perceptions and Forecasts study released by Refinitiv of the London Stock Exchange Group (LSEG). I’m here.
According to Refinitiv’s 2022 Sukuk Survey, approximately 41% of respondents remain bullish on increasing global sukuk supply.
Entitled “Navigating a new Environment,” the report forecasts that global sukuk issuance will grow at an estimated CAGR of 6.8% over the next five years, reaching $257 billion in 2027. The first half of 2022 is expected to remain strong despite strong issuer activity at the start of the year, capitalizing on strong demand from international investors.
Mustafa Adil, Head of Islamic Finance at LSEG business Refinitiv, said: This is an 8.2% increase from his $181.6 billion in 2020, while compound annual growth over the past five years was 21%. “
“Global sukuk issuance in the first half of 2022 was $100.9 billion, slightly below the $104.2 billion in the first half of 2021. Despite a strong start to the year, the Federal Reserve and other central banks Issuance momentum has slowed as the global monetary tightening cycle has begun, and a surge in oil prices has also contributed to the slowdown as it reduces the need for government borrowing in the core sukuk market. dollar sukuk issuance reached $22 billion, down 10% from $33.2 billion in the first half of 2021.
Malaysia, Saudi Arabia and Indonesia remain the largest issuance hubs for sukuk, together accounting for 75% of sukuk issued in 2021 and the first half of 2022.
In Saudi Arabia, Sukuk raised $28.1 billion in the first half of 2022, compared with $24.2 billion in the same period in 2021, despite soaring oil prices. Still, issuance slowed in the second quarter as Saudi Arabia posted a surplus on rising oil revenues. As with most GCC governments, once global financial market volatility subsides, issuance may be offered to support new and ongoing infrastructure projects. This is also the case for his ESG sukuk issuance in this region in the pipeline, where more favorable terms await.
Sovereigns continue to lead the issuance of sukuk, holding around 60% share of global issuance since 2017. The Saudi government was the largest sovereign issuer in the first half of 2022, holding $22.1 billion despite higher oil prices reducing the government’s funding requirements.