ArabianBusiness.com - Middle East Business News
Monday, 09 November 2009 02:52 UAE time

YOUR DIRECTORY /

| Share |

Sukuk to recover in 2009 - BNP Paribas

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Tuesday, 11 November 2008
SUKUK RECOVERY: BNP Paribas said the issuance of Islamic bonds could recover next year. (Getty Images)

The issuance of sukuk, or Islamic bonds, is expected to pick up in 2009 and could exceed levels from 2007 after a dip this year, BNP Paribas' head of Middle East debt capital markets said on Tuesday.

Sukuk issues, which have fallen to around $14 billion this year, could pick up in the second quarter of 2009 and exceed last year's $50 billion figure as long as market conditions stabilise, Mark Waters told newswire Reuters.

"The pipeline is very strong on both conventional and sukuk issuance for all market players," said Waters, speaking on the sidelines of a conference.

Story continues below
advertisement

"I think you'll see a number of [Gulf] states, in particular Saudi Arabia and Kuwait, that will lean more heavily on sukuk structures than perhaps they would conventional bonds so I think those numbers are achievable."

Waters said that an increase in the number of new bond issues in the US and European markets over recent weeks would help spur activity in the Gulf Arab region.

Bond sales have almost dried up in the second half of this year as the global credit squeeze raised borrowing costs, prompting many Gulf borrowers to shelve sukuk sales as banks become more reluctant to lend.

Sukuk are designed to comply with an Islamic ban on the receipt of interest. Instead, returns are derived from underlying physical assets, such as property. (Reuters)

| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

SHARE PRICE CHECK

 EMAIL ALERTS

  1. BNP Paribas

  2. Islamic Finance


Tell us your story

READER COMMENTS

  1. The tipping scandal 13
    08 Nov ' 09 at 16:32
    Steve you are 100% right. Managers and bosses have no right to use tip money for any other purpose than todistribute it to the staff...   More  »
  2. The party's just beginning 10
    08 Nov ' 09 at 18:31
    The recession may be coming to an end, but my guess is that there is no party in sight, just a depression! The typical line i hear in...   More  »
  3. Al Habtoor chief upbeat on Dubai future 08
    08 Nov ' 09 at 20:55
    I agree with Mr Khalafs comments, yesterday is gone,tomorrow nobody seen, what he is expecting beyound tomorow ,is his positive...   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM