Islamic Finance

Moody's - GCC and Malaysia to drive Islamic finance growth


DIFC - Dubai, March 30, 2020 --

  • Sukuk issuance is set to remain stable at around $180 billion this year
  • There are downside risks from the coronavirus outbreak, as prolonged market disruption could dissuade issuers from coming to market

Islamic finance is set to keep expanding in 2020 and beyond as the Gulf Cooperation Council (GCC) countries and Malaysia help drive growth in Shariah-compliant financial products, though the coronavirus outbreak may disrupt sukuk issuance, Moody’s Investors Service said in a report published today.

“We expect sukuk issuance to remain stable at around $180 billion this year, and the takaful insurance market will see steady growth as insurance premiums pick up in newly penetrated markets,” said Nitish Bhojnagarwala, VP-Senior Credit Officer at Moody’s. “However, downside risks are rising because of the coronavirus outbreak, as prolonged market disruption could dissuade issuers from coming to market.”

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