The rise of sukuk

Islamic finance is emerging as an alternative to conventional funding, according to specialists

This year has seen a dramatic increase in sukuk issuance as a proportion of debt issuance.

Such structures are appealing for their simplicity and capture a public and regulatory mood that has swung decisively away from the complexity that characterised pre-crisis structures, even setting aside their ethical and religious dimension.

Sukuk have so far accounted for 65% of all issuance in the Middle East and North Africa in 2012, up from 21% last year and only 17% the year before, said Mohammed Al Tuwaijiri head...