IslamicFinance.de

As global Islamic bonds languish in the bleakest year for sales since 2010, the next 12 months look just as challenging. Malaysia’s CIMB Group Holdings Bhd ( Valuation: 1.65, Fundamental: 0.55), the top sukuk arranger worldwide for seven of the last nine years, predicts a pick up in 2016 to at least US$40 billion from 2015’s US$34.5 billion. The forecast is still 20% less than the record US$50.1 billion in 2012. Slowing economic growth could weigh on companies’ capital and their investment spending. Borrowers in the US$2 trillion Islamic finance industry also now face higher costs after the US raised interest rates for the first time in almost a decade and signaled more increases.