Gulf Times – Gulf sukuk issuers eye GCC, Asia deals

Arab Gulf banks and corporates are expected to issue more Islamic bonds, or sukuk, denominated in local Gulf and Asian currencies in the coming months, driven by increased appetite for regional and Asian debt at a time of heightened concerns over the health of the US and European economies, bankers and analysts say.

As international financial markets, uncertain about the global economy and Europe’s debt crisis, continue to hamper global lenders’ ability to finance projects and deals in the Arab Gulf region, potential borrowers from the Middle East are targeting wealthy oil-rich GCC (Gulf Cooperation Council) governments and Asian fans of Islamic debt instruments for fund raising.

“From the issuers point of view, they are looking for new sources of capital at competitive prices. From the investors point of view they want to deploy their capital in diversified avenues-both geographies and industries,” said Afaq Khan, chief executive officer of Islamic banking at Standard Chartered Saadiq.

* username: rupertbu