IslamicFinance.de

In the GCC there are only a few corporate entities that currently issue sukuk. GCC governments have so far prioritised external capital market funding for plugging fiscal deficits rather than for corporations. Prevailing subdued oil prices continue to lead to fiscal deficits for GCC nations. According to S&P analysts, governments are yet to be fully convinced of the merits of the private finance model for infrastructure. The GCC corporate and infrastructure sukuk market has yet to exceed double-digit growth in issuance or to attract a wider variety of entities. The Dana Gas restructuring announced in May also influenced sukuk activity in the third quarter of 2017. At the moment, it remains unclear what ramifications the Dana case would have for the sukuk market.