Dec 14 2011
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Saudi Sukuk analysis
The country has embraced its own version of Islamic finance, and as we can see from Zawya's Sukuk Monitor [see opposite] the issue of Sukuk has been warmly embraced across the economic spectrum. The country has given birth to some monumental Sukuk over the last few years, such as the 20-year $2.1bn Saudi Basic Industries Corporation issue of 2007.
Most of the Sukuk issued have been for internal consumption - hence the issuing currency of Saudi Arabia riyal. However, a few companies - most notably Dar Al-Arkan - have experimented with US dollar issues for the international market. Despite the local flavor of Sukuk, the busiest bank in Saudi Arabia has been the UK's HSBC, ably abetted by local subsidiary SABB.
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