Even as recession tightens its grip on the world, some optimists remain. For example, Dubai’s Emaar, a developer in need of fresh financing, has said it is looking to raise $2bn in Islamic bonds, or sukuk, in 2009.
Many other companies and quasi-government entities in the Middle East and elsewhere are said to be looking at issuance. Globally, Zawya, a data provider, has registered more than 100 announced sukuk offers for this year, though some are firmer than others. But will aspiring issuers find takers?
“It is unlikely that we will see many of these sukuk materialise during this year due to the global financial turmoil and current investor appetite, coupled with low liquidity,” says Rami Falah, head of Islamic finance at BNP Paribas in Bahrain.
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