The Middle East’s recent surge in sukuk sales could fall victim to the bursting of a bubble in emerging market debts, according to the London-based private bank Coutts. The bank, part of Royal Bank of Scotland, is recommending a switch towards equities and other assets less vulnerable to a sharp withdrawal of investment.
“There’s a correction coming,” said Gary Dugan, the bank’s chief investment officer for Asia and the Middle East. Investors should “beware in the Middle East of a significant sell-off in sukuk, [where] a lot of leakage from emerging market bond funds is looking for further sources of returns”………………………………………..Full Article: Source