Asian demand to drive Qatar sukuk

The Doha Metro is one of many major infrastructure projects Qatar is looking to finance

Sukuk issuances are set to expand in Qatar on top of financial pressures from increased infrastructure spending and an expected rise in demand from Southeast Asia and China.

Increased spending in infrastructure aligned with the country’s 2016 investment plans, which account for 40 per cent of Qatar’s budget, and the upcoming FIFA World Cup in 2022 will create greater demand for project finance, analysts predict.

Shariah-compliant bonds, already accredited with successfully attracting subscribers from China, Southeast Asia and even the West, will be one way that Qatari authorities and government-related companies will fund projects that include $11 billion for a new international airport and $5.5 billion for a deep-water seaport.

Another $25 billion rail network will cover the construction of a metropolitan railway in Doha, a high-speed rail link between New Doha International Airport, Doha city centre and across the proposed Qatar-Bahrain Causeway into Bahrain, in addition to a freight line that will link up with the wider GCC rail network.

In 2011, Qatar issued 11 per cent of all global sukuk, placing it second behind Malaysia, which represented a substantial 69 per cent of the world’s total issuances.

The Middle East North Africa (MENA) region accounted for 16 per cent of the world’s total sukuk issuances in 2011, amounting to $84.4 billion.

Difficulties getting credit from banks, heightened volatility in equity markets and the ongoing eurozone crisis will also continue to push finance seekers towards sukuk.

Following a greater global shift towards the instrument on top of higher sukuk popularity, global sukuk issuances could be up as high as 50 percent year-on-year in years to come, HSBC Amanah, the bank’s Shariah-compliant wing, announced in early 2012.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

[caption id="attachment_6293" align="alignleft" width="187"] The Doha Metro is one of many major infrastructure projects Qatar is looking to finance[/caption] Sukuk issuances are set to expand in Qatar on top of financial pressures from increased infrastructure spending and an expected rise in demand from Southeast Asia and China. Increased spending in infrastructure aligned with the country’s 2016 investment plans, which account for 40 per cent of Qatar’s budget, and the upcoming FIFA World Cup in 2022 will create greater demand for project finance, analysts predict. Shariah-compliant bonds, already accredited with successfully attracting subscribers from China, Southeast Asia and even the West,...

The Doha Metro is one of many major infrastructure projects Qatar is looking to finance

Sukuk issuances are set to expand in Qatar on top of financial pressures from increased infrastructure spending and an expected rise in demand from Southeast Asia and China.

Increased spending in infrastructure aligned with the country’s 2016 investment plans, which account for 40 per cent of Qatar’s budget, and the upcoming FIFA World Cup in 2022 will create greater demand for project finance, analysts predict.

Shariah-compliant bonds, already accredited with successfully attracting subscribers from China, Southeast Asia and even the West, will be one way that Qatari authorities and government-related companies will fund projects that include $11 billion for a new international airport and $5.5 billion for a deep-water seaport.

Another $25 billion rail network will cover the construction of a metropolitan railway in Doha, a high-speed rail link between New Doha International Airport, Doha city centre and across the proposed Qatar-Bahrain Causeway into Bahrain, in addition to a freight line that will link up with the wider GCC rail network.

In 2011, Qatar issued 11 per cent of all global sukuk, placing it second behind Malaysia, which represented a substantial 69 per cent of the world’s total issuances.

The Middle East North Africa (MENA) region accounted for 16 per cent of the world’s total sukuk issuances in 2011, amounting to $84.4 billion.

Difficulties getting credit from banks, heightened volatility in equity markets and the ongoing eurozone crisis will also continue to push finance seekers towards sukuk.

Following a greater global shift towards the instrument on top of higher sukuk popularity, global sukuk issuances could be up as high as 50 percent year-on-year in years to come, HSBC Amanah, the bank’s Shariah-compliant wing, announced in early 2012.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply