This study examines the performance of global sukuk markets in 2023, with a strong focus on growth patterns, trends, and resilience in the face of difficult economic conditions. The paper presented the performance statistics of sukuk issuance globally. The total value of outstanding sukuk has risen to 850 billion US dollars, marking an annual increase of 2.45%. However, new sukuk issuances have seen a noticeable slowdown, with a 3.25% year-on-year decline. This contrasts with the 7.0% growth recorded in 2022, with the slowdown primarily driven by the rise of oil prices, rising interest rates, and geopolitical tensions. Despite this decline, the sukuk markets showed relative resilience compared to global bond markets, which experienced a significant decline of 17% in issuance by the third quarter of 2023. The paper also referred to regulatory and cross-border inconsistences across jurisdictions that pose a challenge to sukuk issuance. The paper shed light on the green and sustainable sukuk used to finance green projects such as renewable energy. Among the findings of the paper is that sukuk retained a strong demand in the market despite inflation and high interest rates. To embolden the sukuk market, the paper recommends a regulatory harmonization to standardize sukuk regulations, which could boost investor confidence and facilitate cross-border issuance. This study investigates. The performance of global sukuk markets in 2023, with a focus on major growth patterns and trends, And the ability to endure amidst difficult economic conditions.

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Performance of Global Sukuk Markets in 2023: Growth, Trends, and Resilience

  • Abdulmajid Obaid Hasan Saleh,
  • Younes Soualhi

摘要

This study examines the performance of global sukuk markets in 2023, with a strong focus on growth patterns, trends, and resilience in the face of difficult economic conditions. The paper presented the performance statistics of sukuk issuance globally. The total value of outstanding sukuk has risen to 850 billion US dollars, marking an annual increase of 2.45%. However, new sukuk issuances have seen a noticeable slowdown, with a 3.25% year-on-year decline. This contrasts with the 7.0% growth recorded in 2022, with the slowdown primarily driven by the rise of oil prices, rising interest rates, and geopolitical tensions. Despite this decline, the sukuk markets showed relative resilience compared to global bond markets, which experienced a significant decline of 17% in issuance by the third quarter of 2023. The paper also referred to regulatory and cross-border inconsistences across jurisdictions that pose a challenge to sukuk issuance. The paper shed light on the green and sustainable sukuk used to finance green projects such as renewable energy. Among the findings of the paper is that sukuk retained a strong demand in the market despite inflation and high interest rates. To embolden the sukuk market, the paper recommends a regulatory harmonization to standardize sukuk regulations, which could boost investor confidence and facilitate cross-border issuance. This study investigates. The performance of global sukuk markets in 2023, with a focus on major growth patterns and trends, And the ability to endure amidst difficult economic conditions.