{"id":6691,"date":"2023-01-03T05:24:31","date_gmt":"2023-01-03T05:24:31","guid":{"rendered":"https:\/\/ethis.co\/blog\/?p=6691"},"modified":"2023-01-19T04:52:20","modified_gmt":"2023-01-19T04:52:20","slug":"the-sukuk-market-potential-and-challenges","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/the-sukuk-market-potential-and-challenges\/","title":{"rendered":"The Sukuk Market: Potential And Challenges"},"content":{"rendered":"\n

By Reda Diab, Senior Business Development Manager, TAIF Digital Institute for Islamic Finance<\/a><\/strong> – Before the COVID-19 pandemic, sukuk of all kinds grew by 21% approximately as an average annual rate from 2016 to 2020. This makes it one of the most attractive and stable Islamic instruments in Islamic finance.\u00a0\u00a0<\/p>\n\n\n\n

The value of long-term sukuk was double that of short-term sukuk in almost the same period. In 2019, corporate sukuk accounted for 21% of short-term sukuk issues (12 months or less), worth approximately $8.5 billion.<\/p>\n\n\n\n

In 2020, the ratio dropped to only 13% for the same type, almost to $7.5 billion, bearing in mind that in the same period, the value of short-term sovereign sukuk, for example, rose from $12 billion in 2019 to $17 billion in 2020.<\/p>\n\n\n\n

What are the scenarios expected for the coming sukuk market in the current climate of uncertainty on the global scene, which will have the most significant impact on the financial decision-making processes in the coming period?<\/p>\n\n\n\n

The world has suffered from severe economic issues since the start of the COVID-19 pandemic, affecting almost all sectors, especially after the Russian-Ukrainian war<\/a>. These problems caused inflation in many emerging markets, resulting in them raising the interest rates in banks from 15% to 20%.\u00a0\u00a0<\/p>\n\n\n\n

Related:<\/strong> How Sukuk is a Driving Force in the Development of Islamic Finance<\/a><\/p>\n\n\n\n

\"Sukuk\"<\/figure>\n\n\n\n
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Table of Contents<\/p>\n