Saudi sukuks seen doubling next year, says Saudi Hollandi
Saudi firms may launch 10 Islamic bonds, or sukuk, in 2011, more than double their number this year, but they will be dominated by private placements.
Key factors that will spur demand for Saudi sukuk issues will be a low interest rate environment in Saudi and Dubai World's restructuring accord with 99 percent of its bank lenders as well as Dubai's successful $1.25bn conventional bond issue in late September.
Saudi Arabia has had four sukuk issues this year so far, Nisar said, but declined to comment on the expected size of issues and only cited Jeddah-based Islamic Development Bank (IDB) and an Aramco-Total joint-venture as being among the prospective issuers.
The interest rate environment in Saudi Arabia -- the main repo interest rate stands at two percent -- might seem discouraging for prospective sukuk buyers.
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