On February 25, the Bahrain Monetary Agency went on the road to sell a $250 million sukuk – Bahrain's first international Islamic bond.
Bahrain's bond follows issues by Qatar and Malaysia. And the news that Citigroup is working with the German state of Saxony-Anhalt on an Islamic bond suggests that, as well as being used to boost the Islamic capital markets, sukuks can be commercially attractive to a broad audience.
Will corporates start issuing sukuks? Well, they are trying. Project finance in particular could lend itself to the creation of a non-sovereign sukuk market.
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