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Islamic bonds to be issued by Qatar

The last time Qatar knocked at the doors of the global debt markets was in last November with a $5 billion conventional multi-tranche bond. It made use of the investors search for safe heavens even though there were degrees of uncertainty in the market; it was able to catch the attention of HSBC, Citigroup, Mitsubishi UFJ, QNB Capital and Standard Chartered.
It has now announced its plan to go international with its Islamic Bond commonly known as Sukuk. It will be the first time that Qatar takes such an initiative on this level. It is expected to take place before the summer break; that is to say in the second quarter. It has already sent requests to several banks for proposals and is close to mandating officials.
It is of importance to note that since 2009, Islamic investments have been of interest to investors because of its assurance of safety when it comes to investments. The Islamic finance sector is expected to continue growing because of the interest it has incited in the investors.
Qatar used to be one of the poorest in the region and most of its commercial activities were centered on fishing. Since the black gold was discovered in the small state with a population of 1,5 million in the 1940’s, Qatar has now become one of the richest countries in the region. It has made heavy investments to become one of the one of the best tourist destinations for luxurious holiday makers. Qatar has more than 15% of the world’s gas reserves and therefore it has the capabilities of becoming a global energy giant.

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Posted by on May 10 2012. Filed under Finance, Headlines. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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