Sukuk IPOs to grow quickly

The financial markets can expect to see a flurry of new sukuk IPOs after many were held back following recent controversy over whether or not they were Shariah compliant.

With many of the issues now resolved, Majid Dawood, CEO of Islamic advisory organisation Yasaar, told delegates at the MEED Islamic Project Finance conference in Dubai that the market is set for rapid expansion. He said practioners have been 'burning the midnight oil’ to resolve issues and the market will now see a 'spate’ of sukuk coming together.

He also believes the secondary market, which is currently small for sukuk because people tend to hold on to them until maturity, will grow quickly.