Citigroup Sees Sukuk Demand Recovery in a Year: Islamic Finance
Demand for Islamic bonds from the Middle East will return to “pre-crisis” levels by the end of the third quarter as companies restructure debt and higher yields lure investors, according to Citigroup Inc.
Shariah-compliant bond sales from the Persian Gulf are rising after Dubai World, the state-owned holding company, reached an agreement with 99 percent of its creditors in September to change terms on $24.9 billion of debt. Economic growth in the Middle East and North Africa will accelerate to 5 percent in 2011 from 3.8 percent this year and 1.1 percent in 2009.
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