Why so few green sukuk? Sector still faces longstanding challenges, say practitioners
Green sukuk have gained popularity over the last few years among issuers and investors but they remain a small part of the global sukuk market, according to stakeholders speaking to Salaam Gateway.
In a recent report, Fitch Ratings said sukuk issuance with a maturity longer than 18 months from the Gulf Cooperation Council (GCC) region, Malaysia, Indonesia, Turkey and Pakistan totalled $42.2 billion in 2019, an increase from $39.8 billion in 2018.
Bashar Al Natoor, global head of Islamic finance at Fitch Ratings said that while Malaysia housed the world’s first green sukuk in 2017 with Indonesia following, in other regions green sukuk issuances continue to be small.
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