Gulf Sukuk Beat Loans for First Time Since 2006: Islamic Finance
The sales of Persioan Gulf Sukuk are notably higher than Shariah-compliant loans in the Middle East, Europe and Africa. This has not happened since 2006. The reason pointed out is that borrowers seize on tumbling yields to finance roads and airports. The sukuk sales in the GCC are almost four times larger this year, to a large extent due to the sales of Saudi Arabian state-run Civil Aviation Authority and of the Qatari government. Compared to that, Shariah-compliant loans show a growth of only 57%.