[Bloomberg] - Islamic bonds in the Persian Gulf are returning six times more this quarter than in the previous quarter as Dubai-based companies restructure debt and economic growth in the region accelerates. According to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index, sukuk sold by the six-country GCC have returned 2.9% since June 30, compared with a 0.5 percent gain in the 2nd quarter. The average yield on the debt narrowed 83 bps, or 0.83%, in the past six weeks to 6.65% and reached an eight-month low of 6.49% on Aug 3. Shariah compliant bonds in the region may extend gains after the IMF reported that GDP growth in the Middle East will quicken to 4.5%t this year from 2.4% in 2009. CIO of Al Meezan Investment Management Limited., the largest Shariah-compliant fund in Pakistan
forecasted the Middle East may be coming out of its economic woes, thus a better chance that its debts
will be attractive for the region's investors. |
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