Financial News

Corporates slow to take plunge on sukuk

The sukuk market has slowed – nine syndicated deals had been sold as of August 13, the lowest number of deals for that period since 2010, when three were completed. They raised a total of $5.7 billion, the lowest value since 2011's $4.2 billion. The pipeline is filled with financial institutions. The Islamic Development Bank in June more than doubled the size of its sukuk programme to $25 billion from $10 billion. Arab Petroleum Investments Corporation, a multilateral development bank headquartered in Saudi established a $3 billion sukuk programme in July.

Middle East needs to tackle regulatory fragmentation

It is necessary for regulators in the Middle East to gather in order to coordinate on regulatory changes. Thus it will be possible for countries in the Gulf to profit from domestic and foreign fund manager participation.

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