Shariah bonds, known as sukuk, are the instrument of choice for promoting Shariah finance, which is why the fact that they keep coming up as disappointments is very telling about the overall industry…
Gulf Islamic Bond Sales Disappoint
Sukuk issuance in the region has slumped by more than half
This year is shaping up to be a disappointing one for Islamic bond sales in the six-nation Gulf Cooperation Council. Sukuk issuance in the region has slumped by more than half in the year through 28 June, according to data compiled by Bloomberg. It’s a setback for the Shariah-compliant industry, where deals are structured to adhere to the religion’s ban on interest and GCC sales accounted for 31 per cent of all global Islamic bonds in 2014.