The Standard & Pours S & P. Global Credit Dating Agency expects the total versions of the instruments between $ 140 and $ 155 billion in 2021, compared to the versions of the instruments last year, which amounted to $ 139.8 billion and $ 167.3 billion in 2019.
According to Arab Net, the agency said it expects to increase the volume of versions this year as liquidity continues and the return of companies and governments to the market and exceeded new versions outstanding instruments. Its expectation has been strengthened, up the volume of versions in the first quarter of 2021 by 1.4% overall and 22% if the re-issuance of instruments is excluded.
The additional challenges for compliance with the Accounting and Auditing Standards for Islamic Financial Institutions in the Gulf Cooperation Council (GCC) have slowed some exporters, according to the report I informed by the Arab.
Saudi Arabia
The agency expects funding in Saudi Arabia to remain strong, supported by mortgage loans and lending companies under the implementation of the country's 2030 vision projects.
There was some growth in Qatar with the support of investments related to the next World Cup, and less in the United Arab Emirates, where the Dubai Expo is likely to help strengthen economic activity.
Growth will also continue in both Malaysia and Turkey, although Turkey's growth would be a slower pace mainly paid in Islamic banks involved in the public sector, according to the Agency.
Overall, the Agency expects an economic recovery in Islamic finance countries, although gross domestic product's growth will be less than before.
In general, we believe that the sector could grow by 10% - 12% (excluding Iran) over the next two years. The pandemic provided the possibility of achieving more broad and shift growth, but the sector must exploit the full consolidation opportunities associated with specifications and increase its share in sustainable financing activity. The coordination between different stakeholders will be the key to the success of the sector in taking advantage of opportunities for energy transformation in Islamic funding countries and social aspects.
Sectors
Although their contribution to the sector is still small, but the agency expects the growth of the Takaful and investment funds this year. "The Takaful sector is continuing to grow at rates of 5% - 10%, while the investment fund sector may see some growth that investors are seeking revenues.
