Demand for sukuk has been strong in recent years.
The boom in oil prices has delivered a cash windfall for Middle
Eastern investors at a time when they are becoming more
meticulous in applying religious principles to their
investments. Since its birth in 2002, the sukuk market
has grown remarkably. Standard & Poor's recently estimated
that the global market is worth over $80 billion.
The sukuk market is expected to continue to grow, as more
businesses seek to tap the liquid petrodollars and the demand
for shariah-compliant products. From an investor's perspective,
sukuk are emerging as a notable asset class. In addition,
non-Muslims who already own conventional bonds may see the
acquisition of sukuk as introducing a new asset class into
their investment strategy, one that brings diversity to their
portfolio. In the past, most sukuk issues have been
oversubscribed, showing the high demand from investors. But
even though the...