Moody’s expects strong growth in the Islamic finance sector in 2019

Moody’s Investor Services expects strong growth in the Islamic finance sector, reflecting the increasing demand for Shari’ah-compliant financial instruments. The rating agency stated that familiarity as well as understanding of the instrument is increasing and there are no barriers to investors, both Islamic and conventional to investing in these issuances. The growth in the Islamic finance sector is expected to translate into stronger prospects for green Sukuk issuance by sovereigns and financial institutions. The green Sukuk market will benefit from the buoyant demand as institutional investors seek to integrate sustainability into their asset allocation and risk management practises.