Last week reported that Moody’s Investor Services had downgraded a Kuwaiti firm that had issued Sukuk (Islamic Bonds).
This weekend we were greeted with the news that Moody’s had downgraded yet another Sukuk issuer, this time a real estate development firm out of Abu Dhabi. If this is a harbinger of things to come, then there is much to be worried about in the world of Shariah Finance. After all, it was the supposedly wealthy and healthy Abu Dhabi that came to the rescue to bail out fellow UAE emirate Dubai when Dubai World defaulted on its Sukuk.
This warrants careful watching from this point forward…