| After a decade of growth that transformed Islamic finance from an obscure niche into a mainstream alternative, the industry has suffered its first major setback. The market for sukuk, or Islamic bonds, tanked last year, as the global economic slowdown hit the Gulf region hard and forced governments to bail out many lenders, including Islamic financial institutions.
These problems, although very real, haven’t diminished bankers’ enthusiasm about the sector’s long-term prospects. Indonesia and Bahrain have issued major new sukuk in recent weeks, raising hopes for an imminent rebound in issuance...............................................Full Article: Source |