Tuesday April 27, 2010
Poll shows prospects brightening for global sukuk sales
MANAMA: Confidence in global markets for issuance of Islamic bonds, or sukuk, is rebounding as the Dubai debt crisis no longer burdens sentiment, a Reuters poll showed.
The majority of 10 Islamic bankers and industry experts surveyed expect issuance in 2010 to range between US$26bil and US$28bil or top US$28bil, up from a similar poll in January which expected only US$15bil to US$17bil in issuance.
Experts said that market confidence was recovering as the impact of the debt crisis of Dubai, the Gulf Arab business and tourism hub, became more visible. “The Dubai debt story is now taking a back seat,” said Mohieddine Kronfol, managing director at Dubai-based Algebra Capital.
Most respondents saw issuance driven by governments and government-related entities, which supported the market in 2009, followed by infrastructure-related issues and banks that need to refinance themselves.
The majority of respondents saw Malaysia defending its rank as the world’s biggest sukuk market this year, followed by Middle Eastern issuers. — Reuters