The high demand for and low supply of sukuk has led to good deals for issuers willing to tap the market, in a trend that is expected to continue for some time. So far this year, sukuk issuers have included Egypt, Dubai Islamic Bank, First Abu Dhabi Bank and Emirates Islamic.
Egypt made the most of the opportunity with a three-year $1.5 billion debut sukuk at the end of February. The sovereign, which has not issued a conventional bond since 2021, priced its sukuk to yield 11%.
While that might have looked high at first glance, it was inside the curve of Egypt’s 2026 conventional bonds, which were yielding 11.5%
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