Fitch: Promising global Sukuk outlook after robust 2021

Sukuk volumes in 2022 are expected to grow and remain a key financing source in core Islamic finance markets following a robust 2021, according to Fitch Ratings. Total Sukuk issued in 2021 surged 36.1% year-on-year to reach US$252.3 billion, the rating agency said on 12 Jan. Central banks, governments and multilateral institutions dominated issuance, despite Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards implementation challenges, COVID-19 disruptions, and higher oil prices. Local-currency Sukuk amounted to 80% of issuance. Growth for 2022 would be anchored by robust Islamic investor appetite, funding diversification goals, and Islamic-finance development agendas in several countries, said Bashar Al-Natoor, global head of Islamic Finance at Fitch.