GLOBAL: Outstanding ESG Sukuk have increased by 66% year-on-year to reach US$33.3 billion globally as of the end of Q3 2023, according to Fitch Ratings’s Q3 2023 ESG Sukuk dashboard. About 98.2% of Fitch-rated ESG Sukuk are investment-grade.
Fitch also noted that ESG Sukuk have not reached their full potential due to hurdles including lack of green assets or projects, extra costs and complexities linked to both Shariah compliance and meeting ESG goals as well as longer time-to-market.