"In continuation of Global Investment House coverage of capital market, we have come out with MENA Sukuk Report to provide you with the insight on the developments in the sukuk market, performance and outlook.
The year 2008 witnessed a decline in the amount of sukuk issuance, after years of massive growth. The amount raised from issuance decreased by 54.5% in 2008 to US$15.1bn, as compared to US$33.1bn in 2007. Despite that, the number of sukuk issues increased from 129 in 2007 to reach 165 in 2008.
The decline in sukuk issuance is due to the credit crunch that forced investors to step aside from the fixed income market, including the Islamic one. As evident of the credit crunch effect on sukuks, issuances in the fourth quarter of 2008 were weak when compared with other quarters in the same year. In the first three quarters of last year, the number of sukuk issuances was 139 raising US$14.3bn, averaging US$4.8bn per quarter. On the other hand, the number of sukuk issuance in the fourth quarter of 2008 was 26, raising US$0.8bn.
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