DUBAI. Moody's Investors Services estimates that sukuk issuance has decreased by 5%, due to the impact of the COVID-19 pandemic.
"The decline was partly caused by the Gulf Cooperation Council (GCC) 's funding needs due to falling crude oil prices and the pandemic," said Nitish Bhojnagarwala, Moody's VP Senior Credit Officer.
For information, the GCC has 6 member countries; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
During the first semester of 2020. sukuk issuance declined by 12% Year on Year (YoY) to US $ 77 billion.
For the record, Moody's said that the issuance of sukuk has always experienced significant growth from 2015-2019.
It is estimated that the issuance of sukuk will return to normal in the second half of this year, since a number of countries need funds to deal with the COVID-19 pandemic. (KR/AR)