With Oil’s Slump, Gulf Nations Seen Turning to More Sukuk
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The almost 50 percent plunge in oil this year is set to unleash a wave of Islamic bond sales as Gulf Cooperation Council nations seek to compensate for slumping revenues.
Sukuk issuance across the region in 2015 will surpass this year’s $14.8 billion, according to Emad Mostaque at Ecstrat Ltd. The 2014 figure is the lowest in three years, data compiled by Bloomberg show. The Gulf states may sell sukuk to help meet planned expenditure, including to fund infrastructure projects at home, said John Sfakianakis, Middle East Director at Ashmore Group Plc.