MUMBAI, Mar. 11, 2008 (Thomson Financial delivered by Newstex) — Standard & Poor’s (NYSE:MHP) Ratings Services said the global market for sukuk (Arabic equivalent of bond) more than doubled in 2007 to exceed 60 bln usd and is on track to top the symbolic 100 bln usd mark in the next few years.
The ratings agency said it expects sukuk growth to continue, fuelled by huge investment and financing needs, notably in the Gulf and Asian countries.
It added while sukuk growth has slowed in the past six months due to unfavourable credit market conditions, once market conditions return to normal, issuance is expected to resume double-digit growth.
‘Corporates find that sukuks are an alternative to financing their business or their projects, and financial institutions are increasingly turning to sukuks to sustain strong lending growth with stable funding sources and to curb maturity mismatches,’ S&P said.
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