GLOBAL: S&P Global Ratings said in its ‘Sukuk Market: The Calm Before The Storm?’ report that the adoption of AAOIFI’s new Shariah Standard 62 could disrupt Sukuk market. The report suggests that the standard could reduce issuance volumes over the medium term if it materially alters the nature and risk characteristics of Sukuk instruments. The standard will transition the industry toward asset-backed Sukuk by requiring the real transfer of underlying assets to investors.
S&P maintains its 2024 global Sukuk issuance forecast of US$160 billion to US$170 billion, including foreign currency-denominated issuance of US$45 billion to US$50 billion.
