Qatar trumps sukuk market with record issue

Qatar has expanded its funding sources to include a US$700m sovereign global Sukuk, issued on September 30, 2003, primarily intended to diversify funding for upcoming natural gas projects and development. The issue was oversubscribed, mainly to new Middle Eastern investors, yet lacks major involvement from North American and European financial institutions. A sovereign Iraq Reconstruction Sukuk could promote international acceptance of the sukuk as a viable form of Islamic based investment. The Qatar Sukuk, as well as the State of Qatar, receives a rating of A+ by Standard & Poor's, and has a tenor of seven years (callable after five years).