Sukuk bonds still in demand
In spite of the fact that the Gulf bond market remains controlled, demand is still there, especially for sharia-compliant investments. The proof comes from an oversubscribed bond offering from a small Emirati bank.
Issuance in the GCC so far this year have been largely limited to sovereigns or sovereign-backed entities. The main reasons for this are the unrest in the Middle East.
Standard & Poor’s shows that only 6% of sukuk in the first quarter of the year were from corporate.