Moody's expects demand for Islamic finance to remain strong in 2025, thanks to sustained economic momentum and ambitious development agendas in core Islamic markets.
According to the agency, Indonesia and Turkey will increase their sovereign sukuk issuances, in exchange for a decrease in Saudi Arabia and Malaysia issuances. It expects sukuk issuance by companies and financial institutions to remain robust.
Moody's said Islamic banking is likely to continue to outperform conventional assets, as demand for Islamic finance will continue to rise, supporting strong economic activity in the Gulf and Southeast Asia, due to diversification agendas, investment flows and population growth.
Saudi Arabia will remain the largest market for Islamic finance, followed by Malaysia second, the UAE third, and Kuwait fourth.
Source (Al-Rai Kuwaiti Newspaper, Edited)
