Issuance volume of global sukuk is forecast to drop to US$130 billion by the year-end, according to ratings agency Standard & Poor (S&P).
A report from S&P Global Ratings cites lower and more expensive liquidity, increased regulatory complexity and reduced financing needs as the reasons for the decline in volume.
In the first half of the year, total sukuk issuance totalled $74.5 billion, as opposed to $93.3 billion in the same period in 2021.
The report, ‘Global Sukuk Issuance 2022: How Low Can It Go?’ predicts that volumes will continue to decline during the rest of the year.
Total sukuk issuance is expected to reach $130 billion by year-end as opposed to $147.4 billion in 2021.
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