Sukuk issuance to be “flat at best in 2022”, says S&P

January 20, 2022

SINGAPORE-- S&P Global Ratings believes that sukuk issuance volumes will be flat at best in 2022 amid lower and more expensive global and regional liquidity, increased complexity, and reduced financing needs for some core Islamic finance countries.

Total sukuk issuance stabilised at US$147.4 billion last year compared with S$148.4 billion in 2020, but foreign currency denominated issuance increased 10%. 

"We forecast total issuance of about US$145 billion-US$150 billion in 2022," says S&P.

"On a positive note, we see opportunities created by the energy transition in core Islamic finance countries, higher environmental, social and governance (ESG) awareness from regional issuers, and stronger automation using fintech solutions as likely to support future sukuk market growth." (ATI).