Published: February 3, 2016
Better times ahead.
After a mixed year for issuance, sukuk issuance is expected to jump with expectation that Saudi Arabia and Kuwait will be active.
This year, sukuk issuance across the MENA region is expected to outpace bond issuance, according to research conducted by the equity research firm KAMCO. While sukuk declined 38% in 2015 – due to volatile rates and weak commodities – KAMCO believes 2016 will be a strong year for projected activity.
With bond issuance having leapt by 67% last year (boosted in no small part by Saudi Arabia’s return to the market after an eight-year hiatus) liquidity in conventional banks is now tight. By contrast, the Islamic fund market has plenty of liquidity available to be tapped by governments and corporates.