Is the nascent Islamic Capital Market (ICM) finally taking off? Sukuk (Islamic bonds) issuance, for instance, has shown a spectacular rise in the last year or so. In the Gulf Co-operation Council (GCC) countries, Sukuk issuances now accounts for 81 per cent of the total new bond issuances, compared to just 26 per cent in 2005.

City-based international law firm Trowers & Hamlins in London in a recent report stressed that GCC-based non-sovereign borrowers issued $4,585m worth of Sukuk between January and June 2006, a 117 per cent increase on the $2,113m for the same period in 2005. read more...