GCC sukuk issuance remain muted because of complexity | GulfNews.com

GCC sukuk issuance remain muted because of complexity | GulfNews.com:

"Volume growth of sukuk issuance this year is expected to remain flat largely due to the complexity of issuance rather than liquidity that is limiting sukuk growth, according to rating agency Standard & Poor’s. Volume of sukuk issuance across the GCC was muted in 2016 compared with conventional bond issuance. “Some market participants believe that the liquidity drop in Gulf countries explains the lower issuances volumes. We see liquidity in GCC as adequate in a global comparison, though, and believe that the less supportive economic environment is translating into fewer growth opportunities, which could actually encourage banks to reallocate liquidity in the bond and sukuk market, ultimately leading to an uptick in issuance volumes,” said Dr. Mohamed Damak S&P Global Ratings’ Global Head of Islamic Finance."



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