KFH Research reports that Shariah-compliant bond (sukuk) issuances reached $131 billion during 2012, a 54% increase over 2011.
As we have reported previously on SFW, sukuk are fast becoming the weapon of choice for promoting Shariah through Shariah-Compliant Finance.
Here is how that works:
• As we know from historical records and contemporary statements from Islamic leaders, the purpose of Shariah Finance/Islamic economics is to promote Shariah itself.
• Islamic imperialists are now using the credit markets to force Shariah-compliance worldwide, not just among and between Muslims.
• Sukuk impose Shariah-compliance two ways:
1. Islamic issuers increasingly issue Sukuk rather than conventional debt instruments. Therefore, creditors who want to invest in the credit markets are compelled to invest their money in a Shariah-compliant way.
2. On the flipside, Islamic investors who invest in the credit markets are increasingly insisting on Shariah-compliance, thus compelling issuers/borrowers to issue Sukuk instead of conventional credit instruments, such as debentures. This is happening in the sovereign debt markets, as well as the corporate debt markets. The power wielded by oil-rich Islamic nations, institutional and individual investors makes this form of Islamic imperialism to impose Shariah-compliance globally potentially very powerful.
Examples of Sukuk emerging in the West during 2012 include a $506 million Sukuk issued by Saudi French Bank and a $55 million Sukuk issued by FWU Group in Germany. Unfortunately, the trends are not encouraging. It is likely that we can expect more Western companies to find themselves involved in the Shariah-compliant Sukuk markets.