RBS, Barcap: are sukuks the answer for emerging markets?

Author: Gemma Varriale | Published: 29 Mar 2012

As European banks retrench from Central Eastern Europe, the Middle East and Africa (Ceemea) and Asia-Pacific, the question of who will fill the liquidity gap has gained increasing significance.

Many are hoping that high yield will make up the shortfall, while corporates have been tapping local bond markets in both Russia and Brazil.

Discussions around whether it’s viable for emerging market governments and banks to use sukuk structures to raise finance have provoked mixed responses.

Hasan Mustafa, managing director and head of debt capital markets Ceemea at RBS, believes the full potential for borrowers...