Complex Made Simple

Islamic loans in Middle East to rise in 2011

HSBC Holdings has said that Islamic loans in the Middle East are expected to rebound next year from a five-year low, as accelerating economic growth and Qatar's building for the soccer World Cup boosts spending, Bloomberg has reported. "We have a number of transactions in the pipeline" which may close in the first half of next year, Mohammed Dawood, Dubai-based director of debt capital markets at HSBC Amanah, said. "We'll definitely do more loan deals in 2011 compared to this year." HSBC was the biggest arranger among 36 lenders for Islamic financing this year in Europe, the Middle East and Africa, lending $1bn, while Standard Chartered was second with $914m, the news service said.