Sukuk proves a capital but complex friend - FT.com

Gulf capital markets have witnessed a surge in sukuk sales in recent months, as issuers turn to Islamic finance for capital.

Such finance has offered companies a way to raise money after tight global credit conditions last year limited issuance from the region.

Islamic banks, important buyers of sukuk, are highly liquid. Low loan-to-deposit ratios leave them with excess funds to deploy into new investments. At the two largest publicly listed Islamic banks in the United Arab Emirates, total loans amount to only four-fifths of their combined deposit base.

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