2023-07-13 14:43:51
Thursday, July 13, 2023 – 6:41 PM
ABU DHABI, July 13 / WAM / Green sukuk issuances increased by about 50% in the first half of this year 2023, according to a recent report by Standard & Poor’s (S&P).
“The upcoming Cop28 conference in the UAE is expected to shed more light on the opportunities offered by Islamic finance and sukuk to finance initiatives related to sustainability and climate change,” the agency said in its report.
The agency expects green issuance to grow as issuers seek to meet investor demands, and as major Islamic financing countries seek to reduce their carbon footprints.
“Many of the major Islamic finance countries are implementing strategies to put their economies on a path towards net greenhouse gas emissions, which could imply future growth in green sukuk issuance,” the agency said in the report.
The agency expects to see more activity in this field, as issuers attract the attention of global investors and regulators begin to provide incentives, for example, the Emirates Securities and Commodities Authority announced in June 2023 an exemption from registration fees for companies that list their related bonds or sukuk. sustainability in the local market by 2023.
In the first half of this year, total sukuk issuances decreased by 17.5% to $83.2 billion, compared to $100.7 billion in the same period last year.
In its report, the agency expected that the total global issuance of sukuk will reach between $160 billion and $170 billion this year, which is higher than its initial estimate of $150 billion, but still less than the figure for 2022, due to the decline in issuance of sukuk in local currency.
Islam Al-Hussein / George
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