Recently, a number of sovereign Islamic bonds, or Sukuk, in the region by governments or government agencies has led to hopes for a revival, as a necessary starting point for prices for private investors to assess appetite.
"I do not expect a big rebound or turn before the end of this year or even in the first or second quarter of next year", Naveed Khan, Managing Director of Arab Banking Corporation Islamic Bank reported Reuters.
Khan said that private companies in the region are currently not willing to pay 100 and 200 basis points above 350 basis points above the cost of funds over the last questions.
"I do not think that at that time not yet," he said.
Bahrain 5 years the price of $ 750 million Sukuk in June to 340 basis points over U.S. treasuries.
Khan said that the company is currently focused on debt restructuring, and despite plans to expand the scale for those who must ensure that the market "Sukuk".
Global Sukuk issue in the past year by 56 percent to 14.9 million dollars, according to Standard and Poor's, a global financial crisis.
The restructuring of the debt that private and Saudi Saad Ahmad Hamad Algosaibi and brothers (Ahab) has shaken the confidence of investors in the region.
Khan told ABC Islamic Bank plans to its revenues by offering new Sharia-compliant hedging instruments, which have been developed.
This tool, which can be used for hedging currency and commodity price fluctuations, based on the structure waad.
Waad is a promise for a good buy at a later date and can be compared with the option.
Islamic finance have been at odds with derivatives and hedging, as some scientists have found the door open to speculation and high leverage, which is prohibited under Islamic law.
Khan said that most Islamic hedging instruments based on murabaha and invest murabaha transaction.
A Murabaha is an Islamic money market in balance sheets of banks with which the bank buys an asset from a third party and sells them to consumers at cost, as well as benefits, funding, without interest.
"Most of the traditional use of fund balance, but also because it is based on the Murabaha broker for payment of charges for goods," said Khan.
"This makes it more expensive than traditional off-balance sheet derivatives," said Khan.
He said that the gradual recognition of scientists based on the tool waad cover.
"It worked very well with our Shariah scholars, as well as our customers," he said.
Academic Abdul Latif Al Mahmoud, Sheikh Nizam Yakubi and Mohammed Ali Elgari, that the Supervisory Board of Islamic Sharia ABC Bank, the net profit of $ 25.84 million in 2008.