Sukuk outlook bright after lackluster 2008

Saudi Gazette:The market for Islamic bonds, or Sukuk, declined sharply in 2008 as a result of global market turmoil, drying up of liquidity, widening of credit spreads, and a wait-and-see attitude among investors.

Although difficult to measure, part of this decline could also have been due to comments about the Shariah compliance of some Sukuk by the Accounting and Auditing Organization for Islamic Financial Institutions.

Standard & Poor’s considers that long-term prospects for the Sukuk market remain strong, however. Although volumes dropped dramatically in 2008 (down more than 56 percent), the market attracted about the same number of issuers as the year before...Continue Reading