Islamic bonds (sukuk) are set to become the big hit of the Middle East’s financial markets this year as low costs, a contracting European banking industry and a rising tide of religion across the region spur interest from borrowers and investors alike.
Dubai gave the segment a lift last week when investors climbed over themselves for two issues of sovereign sukuk worth $1.25 billion. The strong demand was reflected in pricing of 4.9% for the five-year bond, a record low for dollar-denominated bond issued by the emirate, and 6.45% for the 10-year issue………………………………………..Full Article: Source