IslamicFinance.de

Earlier this year Standard & Poor’s (S&P) documented the global trend of last year, and predicted another strong few years, subject to the resolution of certain structural factors. Global issuance had grown for the fourth year running in 2012, by 64 per cent to about $138 billion. However, funding needs and infrastructural investments, combined with investor sentiment, are behind today’s momentum. Supportive GCC-Asian trade policies and the international search for yield will reinforce the attraction of GCC sukuk. Banks needing to refinance existing debt and match the needs of corporate clients, particularly in project finance, will provide a further boost regionally. Sovereign and sovereign-related issuance will continue to shape the sukuk market, which will also see increased participation from frontier markets, notably in Africa.