Sukuk growth may be blunted by UAE standards controversy – S&P
Published 02 Jun,2021 via Arab News - Economy - DUBAI - The growth in shariah-compliant bond issuance this year could be hurt by complications arising from the UAE’s recent adoption of tighter Islamic finance standards, according to S&P Global Ratings.
Sukuk issuance will be between $140 billion and $155 billion in 2021 after $139.8 billion were sold last year, Mohamed Damak, global head of Islamic finance at the rating agency, said in a webinar on Wednesday.
One of the downside risks to that view is a need to resolve issues around Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Standard 59 regarding the sale of debt that was adopted at the beginning of the year in the UAE, Damak said.
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