Wednesday, September 03, 2008

Sukuk rising or falling?

Juhaina Kasimali at Zawya provides a comprehensive overview of the sukuk market. Haris Anwar at Bloomberg describes the fallout from the controversy about repurchase agreements in ijara sukuk. There was only $11 billion in sukuk issued through August compared with $21 billion in 2007. Prices have also declined in the secondary market.

London continues to lead Western countries in the size of its Islamic finance industry. The UK is the only Western country on the IFSL global ranking of Sharia-compliant assets by country at 10. The UK also has one of the most robust, although still small, secondary market for sukuk with trading volumes of $2 billion. The time frame for the volume number was not specified but I would assume it is for last year because the total issues of sukuk in 2007 was $38.6 billion worldwide and fewer than ten are listed on the London Stock Exchange.

Many lawyers working on Islamic finance are moving to the GCC.

The most recent Central Bank of Bahrain salam sukuk was again oversubscribed, but by less than previous issues. This issue received subscriptions of BD7 million for the BD6 million issue while last month, BD13 million in subscriptions were received for the same size issue.

No comments: