Emerging Market (EM) sukuk issuances rose by nearly eight per cent to around US$160 billion (US$1=RM4.19) in 2021 from US$149 billion in 2020, supported by increasing activity in the sovereign and corporate space, according to Moody’s Investors Service.

In its Quarterly EM Issuance Monitor – Fourth Quarter (Q4) 2021 research publication, Moody’s said Malaysia and Saudi Arabia continued to dominate the sukuk issuance market with 37 per cent and 29 per cent of total issuances, respectively.

Green sukuk issuance offers significant potential for future growth, issuances from Malaysia and Indonesia led in this space, but Saudi Arabia is also becoming more dominant, it said.

“Green sukuk issuances are rising from a very low base. Green, social and sustainable issuance in 2021 was 160 per cent higher than year-earlier levels and was dominated by Asia-Pacific issuers.

“Corporate issuance continued to drive growth in the EM sustainable market in 2021, accounting for US$29 billion, with sovereign issuance picking up pace (US$23 billion), while financial institution groups stood at US$18 billion,” said Moody’s.