Since its inception in 1990, the popularity of sukuk as a Shari'ah-compliant substitute for conventional bonds has led to the rapid expansion of the sukuk
market. This market is now a significant source of capital for many
companies in Southeast Asia, the Middle East and north Africa – regions
which are each home to fast-growing Muslim populations. Notably, a
number of sovereign entities in these regions have raised capital
through issuance of sukuk. Experts forecast the global sukuk market to exceed $100 billion in 2012 for the first time.
Until recently, the majority of sukuk have been issued by
Southeast Asian companies seeking to take advantage of the liquidity and
stability provided by the market-leading Malaysian sukuk market.
However, a shift in this trend has been seen so far in 2012, with a
number of Middle East sovereign entities and corporate issuers tapping
into increasing investor interest in sukuk. By...