IslamicFinance.de

Persian Gulf Islamic bond issuers are avoiding collateral based on real estate after Dubai property prices plunged 50 percent.
Debt linked to returns from oil fields, aluminum and manufacturing plants are more popular with investors than property.
Defaults by some companies have increased concern among investors about risks associated with Islamic bonds. International Investment Group KSCC, an Islamic financial company based in Safat, Kuwait, said July 26 it was unable to pay $152.5 million to bondholders who demanded immediate repayment after it defaulted on a $200 million Islamic bond.