Sukuk issuance down by 21.5%

The number of sukuk issued this year, until June 14, stood at 69, a 21.5 per cent decline over the 88 Islamic bonds issued during the same period last year, exclusive Emirates Business research reveals.

The amount raised during the same period, however, witnessed a more moderate decline of 9.4 per cent, from $9.35 billion (Dh34.33bn), to $8.46bn from January 1 until June 14, this year.

Nevertheless, with conventional debt sour-ces having all but dried up, appetite for sukuk issuance remains good, said experts. "Given the credit squeeze from the banking sector, I feel sukuk issuance will gain in preference during the year," Raghu Mandago-lathur, Senior Vice- President – Research, Kuwait Financial Centre (Markaz), told Emirates Business.