S&P sees strong years ahead for sukuk

According to a report released by Standard & Poor’s (S&P), the sukuk market can expect another few strong years after global issuance of sukuk expanded for the fourth year in a row in 2012. The report “Investors Are Snapping Up Sukuk, Despite Questions About Creditworthiness” points out that there is little to hinder another strong performance by the sukuk market in the next few years. The sukuk market is believed to have the potential to grow and join the mainstream. New sukuk issuance worldwide is expected to exceed $100 billion again this year. However, yields in the region have been declining, and even fell under those on conventional debt.