Monday 23 August 2010

Persian Gulf Falls Behind Asia in Sukuk Sales Amid Slump: Islamic Finance - Bloomberg

Islamic bond offerings from the Persian Gulf are struggling to keep up with Malaysia, the global hub for Shariah-compliant financial services, after new sales in the region fell to their lowest level in five years.

Issuance of Islamic debt from the Gulf has declined 24 percent to $2.5 billion so far this year, involving sales by three companies, according to data compiled by Bloomberg. Asia’s 29 borrowers, including Malaysia, issued $5.7 billion. The Gulf last outstripped Asian sukuk offerings in 2007.

The slump in sales shows investors have yet to fully regain confidence even as Dubai Worldworks toward restructuring $23.5 billion of debt and global economies recover from the deepest financial crisis since the 1930s. HSBC Holdings Plc, Europe’s largest bank, and Mashreq Al Islami bank in Dubai said planned government sales in the Persian Gulf will help revive the market.

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