S&P: Outlook for Islamic finance remains strong

STANDARD & Poor’s believes the outlook for Islamic finance remains strong despite the sharp fall in global sukuk issuance to US$14.9 billion (RM52.89 billion) in 2008 from US$34 billion (RM120.7 billion) in 2007.

STANDARD & Poor’s believes the outlook for Islamic finance remains strong despite the sharp fall in global sukuk issuance to US$14.9 billion (RM52.89 billion) in 2008 from US$34 billion (RM120.7 billion) in 2007. In its Islamic Finance Outlook 2009, Standard & Poor’s Ratings Services credit analyst, Mohamed Damak said the sukuk market suffered heavily in 2008 but the outlook for asset-backed sukuk remained positive, despite the doubts raised by the disruption in global financial markets and in structured finance.  ”When economies begin pulling out of the downturn, we expect Islamic finance to resume its rapid growth,” Damak said.  “The long term pipeline for sukuk issuance is healthy, and the market is attracting interest from an increasing number of issuers both Muslim and non-Muslim countries,” Damak added.  Link: http://www.cibafi.org/NewsCenter/English/Details.aspx?Id=3492&Cat=0