IslamicFinance.de

Islamic bonds from the Gulf Cooperation Council (GCC) are heading for the worst month in more than a year after oil prices plunged to the lowest since 2009. Sukuk in the six-nation bloc, home to about a third of the world's proven oil reserves, lost investors 0.7 per cent so far this month, poised for the worst performance since August 2013. Middle East sukuk also underperformed non-Shariah compliant debt from the region last week. However, even after this month's drop, GCC sukuk have returned an average 5.8 percent to investors this year. Nevertheless, a prolonged period of oil price weakness will inevitably impact liquidity and credit risks in the GCC region.