Global Sukuk Activity Slows Through The First Half Of 2022

Fitch Ratings reported a growth of 11.6% in total Sukuk issuances in the first quarter (Q1) of 2022 as a result of sovereigns and multilateral institutions returning to the market. Particularly notable were the large number of issuances out of Saudi Arabia during this time. The Sukuk market was predicted to stabilize for the remainder of 2022 but, in July, Fitch reported that total Sukuk issuances (all markets and currencies) fell in the second quarter by 27.5% due in part to the reduced financing needs for most core oilexporting sovereigns on the backdrop of increasing oil prices.

Several global Sukuk issuances throughout the first half of 2022 continued to involve offshore structures and this is bound to continue notwithstanding the depressed outlook for the market.