Sharp reduction in sukuk issues as market looks to innovation

Even though financial market conditions are improving, “global sukuk issuance [is likely] to be muted this year since corporates are reducing capital expenditure and some sovereigns in core Islamic finance countries are tapping conventional markets”, Standard & Poor’s Global Ratings (S&P) observed in a report released in early July. Global Sukuk Market: A Window Of Opportunity Is Opening calculates that the global market in Islamic bonds dropped by 27% in H1 2020.