Global Sukuk issues, or Islamic bonds, more than doubled to $4.67 billion in the first-quarter from the same period a year earlier, data from Zawya shows. The Middle East and North Africa saw Sukuk issues for the first-quarter rise to $625.1 million, a sevenfold increase from a year earlier. But first-quarter Sukuk issues in the region dropped by 81 percent from the fourth-quarter of last year, according to Zawya's latest market data. Global Sukuk issues in the first-quarter slipped 43 percent from the fourth-quarter of last year, Zawya data shows. Bankers expect the Gulf to see more Sukuk issues as problems with Dubai World recede. Investors have been jittery ever since the government-owned conglomerate asked investors on Nov. 25 for a six-month standstill on $26 billion of debt. Dubai World issued a restructuring proposal last Thursday. “The first quarter of this region was overshadowed by the Dubai World situation which has seen new issuance, except for a few, come to a standstill,” said Abdul Kadir Hussain, the chief executive of Mashreq Capital. “But we expect this region to catch up in the next two quarters as Dubai World clears up.” Government borrowers accounted for 87 percent of all first-quarter Sukuk issues, according to Zawya. The largest issuer for the first quarter was Malaysia, followed by Indonesia and Saudi Arabia. Malaysia issued 53 percent of all Sukuk, or $2.47 billion, followed by Indonesia at 33.5percent and Saudi with a 9.6 percent share, Zawya data shows. The largest issue was the Indonesia Retail Sukuk at $883 million followed by Saudi's Daar Sukuk at $450 million. The top five lead Sukuk managers for the first quarter were Bank Negara Malaysia; Bank Indonesia; the Central Bank of Bahrain; Deutsche Bank and Goldman Sachs International. The largest issues in the pipeline are the United Arab Emirates' Emaar Sukuk Ltd. at $2 billion followed by Malaysia's Axiata Group Sukuk at $1.22 billion, according to Zawya.
