Sukuk as Safe Haven Instrument to Battle COVID-19

Finally. An article on Sukuk by RAM.  Sukuk have the potential to be used as monetary and fiscal tools in battling COVID-19. Here is the article.

Here is a spot on article from S&P. An excerpt below:

"Innovation and Green Sukuk Will Take A Back Seat

The momentum in using blockchain for sukuk and issuing green sukuk will likely slow this year. We were expecting these two areas to play a significant role in opening up the sukuk market. However, the current economic shock and volatility in capital markets mean that issuers will probably no longer view them as a priority. We believe that, once the dust settles, green sukuk and issuance of sukuk using blockchain technology will be two major accelerators for the industry.

We are also of the view that the current health crisis could act as a catalyst for the issuance of social sukuk or a new breed of instruments, for example, one on which the rate of return would decline if the issuer fulfills certain social objectives, such as supporting the healthcare system or helping companies affected by COVID-19 so they don't need to lay off staff. We also see an opportunity for the reemergence of certain strong Islamic instruments, such as Zakat and Waqf, which could again play a role in reducing the impact on the most vulnerable segments of the population or poor countries. This would not only be in line with the ultimate goals of Sharia but also create a new growth channel for the industry."

Pic. Market is volatile.