Despite years of market development, pushing by Islamist governments and promotion by Shariah scholars, companies other than banks in the Middle East, have been slow to issue Shariah-compliant bonds, also known as sukuk.
The sukuk market has slowed – nine syndicated deals had been sold as of August 13, the lowest number of deals for that period since 2010, when three were completed. They raised a total of $5.7 billion, the lowest value since 2011’s $4.2 billion. The record year-to-date for issuance was 2012, when 21 deals raised $18.2 billion.
Mohamed Damak, global head of Islamic finance at credit rating agency Standard & Poor’s, said: “Some of the large issuance of last year didn’t materialise this year.”