Resolution On Nakheel To Boost Sukuk Market

After the default of Saad, Investment Dar and the East Cameron Gas Company, not to mention fears of a default on Dubai's World's Nakheel sukuk, the market for Islamic 'bonds' or sukuk ended 2009 on a bad note. Yet a positive resolution of the uncertainty surrounding the outcome of the Nakheel sukuk could change market sentiment towards the sukuk market. On 8 March, Nakheel's 2.75% US$750mn sukuk rose to 56.25 cents on the dollar, up from 50.25's 5 March close and a low of 46.5 on February 17. This rise was related to two events. First, JP Morgan Chase issued

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