France changed laws to facilitate the issuance of sukuk. The sukuk--by an unnamed financial institution--which would be the first in France and is expected to be up to €1 billion is being pushed back to later this year or early 2010 by "a number of challenges from the Shari'ah and legal point of view".
The global sukuk market will reach $16 billion this year according to Badlisyah Abdul Ghani of CIMB Islamic, with a majority coming from Malayisia. Also Gatehouse Bank in the UK executed a cross-border commodity murabaha transaction with CIMB Islamic using the Kuala Lumpur-based Bursa Suq Al Sila. Finally, CIMB Islamic confirmed it had invested "a couple of million dollars" in the Saad Group's Golden Belt 1 Sukuk. In the GCC, the sukuk issuance over the year to July 31 was $4.3 billion compared to $12.8 billion in conventional debt.
- Delphi Trade Inc is starting a Shari'ah-compliant fund to help US firms finance exports.
- Islamic finance must broaden its portfolio in order to continue growing.
- The new conservative government in the UK remains committed to enhancing London's stature as a Western center for Islamic finance.
- Bursa Malaysia sold 25% of its derivatives business to CME Group which will make these products available in the US through the CME's electronic platform.
- Parts of Nakheel may be folded into Istithmar World, the investment arm of Dubai World.
- The Nakheel sukuk redemption looms, but other Dubai-based companies may be planning bond offerings.
- Indonesia will plan to offer sukuk with maturities of greater than 5 years in their regular offerings beginning this October.