After the financial crisis, sukuk issuance has reached new high levels, and many of the issuers are GCC-based. However, secondary market liquidity has not matured as quickly. The Eurobond market development from the 1960s to the 1980s provides an instructive case study that can be used to facilitate greater secondary market trading. If the same liquidity (relative to primary issuance) in sukuk is achieved, the size of the market for dealers facilitating the trade is significant. Secondary market volume could represent almost ten times the level of primary market issuance. With total sukuk issuance in 2012 reaching $131 billion globally, with about one-quarter from GCC issuers, this represents a potential GCC secondary market of roughly $325 billion, which could generate revenue for dealers of perhaps $2 - $3 billion. It will take work to reach this, but it should be a very attractive market for dealers.
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