RIYADH: Global long-term sovereign and supranational sukuk issuance volumes are poised to moderate in 2026 from the near-record highs witnessed the previous year, according to Moody’s Ratings.
The credit rating agency projected the total will ease to approximately $110 billion this year, driven primarily by a strategic shift in Saudi Arabia’s funding approach, even as lower oil prices pressure hydrocarbon-exporting nations’ fiscal positions.
The moderation comes despite what Moody’s describes as “broadly stable sukuk refinancing needs” and weaker oil prices that might otherwise suggest higher borrowing requirements.
The agency’s forecast assumed Brent crude will average around $60 per barrel in 2026, down from $69 per barrel in 2025, contributing to fiscal deterioration across several major sukuk-issuing nations.
This projection of moderation from Moody’s, however, contrasts with a more bullish consensus emerging from other financial analysis firms.
