Saturday, September 23, 2006

Qatar National Bank seeks to cash in on growth of sukuk

"QNB sees sukuk as major growth area", The Peninsula (Qatar), September 23, 2006

The Qatar National Bank, having recently completed a US$ 100 million sukuk for the Qatar Real Estate Investment Company, sees sukuk as one of the areas in which growth is likely to be the fastest in the future, as it has been since 2001, growing by 45 percent per year since then. The article adds one interesting supposition about why sukuk are often held to maturity, that the demand for them outstrips their issue. As the issue of sukuk grows, this is likely to diminish and a secondary market is likely to emerge.

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