jump to navigation

Summer of sukuk makes Gulf bankers cancel holidays June 28, 2007

Posted by islamicfinanceaffairs in Uncategorized.
trackback

Summer of sukuk makes Gulf bankers cancel holidays

Gulf bankers arranging Islamic bond sales have had to cancel or postpone holidays to cope with a deluge of deals during the summer, traditionally a quiet time for business in a region winding down to cope with the heat.

Sales of Islamic bonds, or sukuk, have surged in the last year as more of the world’s 1.2 billion Muslims seek investment vehicles that comply with their beliefs.

“We thought summer was going to be very quiet. We applied for our vacation … all of us just cancelled. We are not going to go anywhere. There’s a huge number of sukuk coming,” Jaafar Badwan of Bahrain’s Unicorn Investment Bank said.

Bankers’ estimates for global sukuk sales this year range from $27 billion to $50 billion, up from $10.2 billion last year, according to ratings agency Moody’s.

Sukuk comply with Islam’s ban on lending on interest and the trading of debt, and are backed by physical assets.

Gulf petrodollars have been driving growth as oil prices tripled in the last five years, catching the attention of many non-Muslim investors.

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: