South Africa is poised to become the latest country to issue
a sukuk, as both Islamic and non-Islamic governments
tap increasing demand for shariah-compliant instruments.
Its government started investor meetings in Europe, Asia and
the Middle East this week. It
plans to raise at least $500 million in its maiden issue of
The announcement follows the UK government’s
landmark sovereign sukuk, which was the first from a
Hong Kong has also just sold $1 billion of sovereign Islamic
bonds. Luxembourg too is
planning investor meetings to market is debut
"South Africa has been discussing the structure and approach
to a sovereign sukuk for a couple of years," said
Shibeer Ahmed, a UAE-based partner with White & Case.
"It’s important that we’re now seeing
non-Muslim countries issuing sukuk."
South Africa is expected to follow the well-trodden path