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Islamic bonds enjoy the increasing popularity
11 December 2007The world financial markets have not still recovered from August credit crisis subprime. However, Islamic bank and financial sectors of economy remain amazingly quiet. Moreover, Islamic creditors and underwriters are carrying out the brisk trade.
Delivery rules of the credit under the name “sukuk” (Islamic medium-term bonds) have become one of the most widespread Islamic schemes. Their essence consists in the following: unlike the western credit establishments the Muslim credit organizations receive the percent not from the given out sum, but from the income of the company-debtor. The volume of such credits in III quarter of 2007 has made nearby 37,3 billion dollars, that is practically twice more, than in III quarter of 2006.
As the representative Kuwait Finance House says, it is a real “silent harbor” for investors. The matter is that they invest in real actives. It is also necessary to note, that the Islam forbids percent on the capital, and accordingly, “sukuk” bonds, which answer all rules of Sheriyat, enjoy huge popularity in many Islamic countries.
However, recently some experts have started to prove that economic prosperity of such bonds becomes irrational. According to their words increase in liquidity market was caused by sharp inflow of petrodollars and they also prove that crisis in the credit markets will not touch the “sukuk” market.
Experts also mark that these bonds are characterized by a number of advantages in comparison with traditional securities: in particular, they strongly depend on the prices for oil (accordingly, on a background of a sharp rise in prices for oil, huge inflow of petrodollars acts into in the “sukuk” market). Moreover, demand for high-quality bonds is continuing to grow. So, at present, according to Kuwait Finance House, the total cost of high-quality Islamic actives is estimated in 1,3 billion dollars.
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