Global sukuk issuance projected reaches $70 billion in 2014 | GulfNews.com

Global sukuk issuance projected reaches $70 billion in 2014 | GulfNews.com:



"Global sukuk issuance is expected to exceed $64 billion last year to reach around $70 billion in 2014 largely driven by increased issuance from governments.



“We expect sovereigns to issue approximately $30 billion of sukuk in 2014, increasing the size of the sovereign market to around $115 billion by year-end 2014. We forecast this strong growth momentum to be sustained as both Islamic and non-Islamic governments increasingly tap or newly enter the market,” said Khalid Howladar, Moody’s Global Head for Islamic Finance.



The last three years have seen the global sukuk market double, with a compounded annual growth rate of 30 per cent for the previous 10 years. The stock of sukuk outstanding almost quadrupled during that period as annual issuance rose sharply from less than $32 billion in 2010 to a record $83 billion at year-end 2012. Worldwide offerings fell to $64 billion in 2013 due to heightened perceptions of credit risk in emerging markets caused by the announcement of the tapering policy of the US Federal Reserve."



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