The sukuk issued by Sharjah-based Dana Gas and
recently denounced as non-shariah compliant will not damage
confidence in the Islamic debt markets, as some have
The gas provider’s announcement in June that
$700 million worth of its bonds, issued in 2013, are not
compliant with shariah law in the United Arab Emirates (UAE)
perplexed the market.
Franklin Templeton is one of many investors in the Dana Gas
sukuk. The firm’s chief investment
officer for sukuk and MENA fixed income Mohieddine
Kronfol said that the impact of this restructuring will be
insignificant to the wider industry in the long-term.
Dana Gas is owed around $1 billion from Iraq and
Egypt"Dana Gas is only one issuer in a global sukuk
market with over 90 issuers," Kronfol said. "The media and
public attention spent on Dana Gas is out of proportion with
what has transpired so far, which is one...