Shuaa Capital seeks to enter sukuk market

Shuaa Capital plans to structure and sell the Islamic bond issues by Saudi firms after the launch last week of a bond market in the kingdom, the head of its Saudi unit said.

"We are working hard to be active players in this market," said Omar al-Jaroudi, the chief executive of Shuaa's Saudi affiliate.

"We are seeking mandates and going after those companies that require financing that do not wish to open their equity base but are willing to open bonds." he said.

Saudi Arabia launched on Saturday a new market for Islamic bonds, or sukuk, diversifying Saudi companies' financing options amid a global financial crisis that has caused banks to be more cautious towards lending.

"Not only there is demand for sukuk, not only there is an interest in sukuk issuance, but there is also support from regulators to support this market," said Jaroudi.

The governor of the Saudi central bank Muhammad al-Jasser said in February that commercial banks and firms seeking financing should tap into the debt market with bond issues. (Reuters)

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