GCC financial institutions and industrial companies are soon set to issue Islamic bonds worth US $30 billion dollars according to Moody’s Investor Services, the ratings agency.
Companies had delayed bond issues due to general economic conditions but should move forward by mid-June this year if there is prudent govenment involvement and an increase in oil prices, said Faisal Hijazi, Business Development Manager and Finance Analyst for Moody’s, during an interview with CNBC Arabiya.
Hijazi confirmed that Islamic bond issues fell by more than 50% in 2008 compared to 2007. He pointed out that the value of bonds issued in 2008 was just over 15 billion dollars, while in 2007 it amounted to more than 32 billion dollars.
“Factors behind the bond issue decline were based on the global financial crisis and the lack of investor confidence in the financial markets,” Hijazi said. He added that new standards by accounting and auditing bodies of Islamic financial institutions also raised doubts on the legality of some Islamic bonds.
As the region’s first and premier 24-hour live Arabic Business TV channel, CNBC Arabiya recently re-launched to include 12 new programmes. Along with a new programming schedule, the CNBC Arabiya re-launch reveals a brand new studio layout with more capacity for live links.