What role will Qatar’s upcoming football World Cup play in Islamic investments?

Question

Accepted Answer

Qatar's World Cup Investments to Bolster Islamic Finance Growth

Qatar's upcoming football World Cup is anticipated to stimulate significant investment, thereby providing a notable boost to the Islamic finance industry. This growth is occurring even as some nations experience a slowdown in their overall gross domestic product compared to historical trends. The Islamic finance sector is projected to expand by 10 to 12 percent across 2021 and 2022, building on its established trajectory.
Investment Drivers in Key Islamic Finance Hubs

Beyond Qatar's World Cup-related initiatives, other regions are also contributing to the expansion of Islamic finance. Saudi Arabia is expected to see robust growth, particularly in mortgage and corporate lending sectors. The United Arab Emirates, while to a lesser extent, will also experience a positive impact from the Dubai Expo, which is predicted to generate economic activity and encourage lending.
Sukuk Market Expansion and Refinancing

The sukuk market, a key component of Islamic finance, is forecast to see a substantial increase in issuance. Total sukuk issuance is expected to range between US$140 billion and US$155 billion in the current year, a rise from approximately US$140 billion in 2020. This growth is partly driven by sovereign entities in core Islamic finance countries that may increasingly tap the sukuk market after utilising conventional markets in the previous year.
Corporate and Deferred Expenditures

Corporate sukuk issuance is also expected to rebound, albeit moderately. Core Islamic finance countries are likely to proceed with capital expenditure projects that were postponed in 2020 due to the pandemic and challenges in accessing capital markets. Furthermore, with an estimated US$65 billion in sukuk maturing in 2021, a portion of this is expected to be refinanced through the sukuk market, further supporting its activity.

Reading history

Hide →

This history is cleared when the page is closed.

What role will Qatar’s upcoming football World Cup play in Islamic investments?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends