Monday, March 11, 2013

Qatar’s sukuk issuance to remain robust, but may disappoint optimists



The continued rapid economic growth in Qatar, despite the suspension of new hydrocarbon-based projects until 2015, has led analysts to suggest that Qatar—and in particular Qatari banks—will be significant sources of new issuance during 2013.  The IMF recently concluded an Article IV consultation with the Qatari government and one area of focus was the development of a domestic yield curve, which was a government priority in the wake of the global financial crisis. 

The shift away from the hydrocarbon sector in the economy represents a drag on the country’s extremely rapid growth rate in recent years, but continued growth in the non-hydrocarbon segment of the economy as well as investments in advance of the 2022 World Cup—primarily from public enterprises and the private sector—could represent a growing source of sukuk issuance either directly or indirectly.  However, the total issuance is unlikely to spike as dramatically as optimists predict, which may lead to disappointment even if there are many positive developments for sukuk in 2013.  




You will also receive the Daily Briefing and Weekly Wrap newsletters and can join the discussion on this subject in the IFG Morning Wrap on Thursday morning at 9:30am Mecca time (GMT+3).  

Please join the IFG on social media using LinkedIn, Facebook, and Twitter.

No comments: