RIYADH: Global sovereign sukuk issuance is expected to drop to $73 billion this year on the back of narrowed fiscal deficits, Moody’s said in a report on Tuesday. The rating agency added that the total sukuk value stood at $88 billion last year and is anticipated to dip to $75 billion in 2023. "We expect issuance to fall as government deficits continue to narrow because of higher oil prices, lower coronavirus-related expenditure, and accelerating economic activity in core sukuk-issuing countries," said Senior Analyst, Alexander Perjessy. "Issuance volumes already dropped 22 percent in 2021, with the largest decline from the Gulf Cooperation Council sovereigns, mainly Saudi Arabia,” Perjessy noted. Moody’s sees the total government deficit of Sukuk-issuing sovereigns in Saudi Arabia, Malaysia, Indonesia, and Turkey dropping to $92 billion this year, down from $118 billion in 2021. GCC sovereigns are likely to see a surplus of $50 billion in 2022, compared to a surplus of $13 billion last year and a deficit of $112 billion in 2020, according to the rating agency.