Article by IFN: 2012 - Fireworks or dynamite?

(SEE IFN): The Islamic finance industry has gotten off to an explosive start this year; with two landmark Sukuk issuances in the second week of January alone. These comprise Projek Lebuhraya Usahasama’s US$9.67 billion Sukuk, the world’s largest offering by a single issuer to date and the launch of a Sukuk from Saudi Arabia’s General Authority for Civil Aviation, marking the first ever sovereign Islamic bond from the kingdom.

The watershed sales were preceded by two benchmark-sized sales from First Gulf Bank and Emirates Islamic Bank, in addition to a US$300 million offering from Tamweel – making up a flurry of issuances that have led market players to predict 2012 as heralding an unprecedented year for Sukuk, even before the first month of the year has drawn to a close.