BAI, May 12 2009: Standard & Poor Standard & Poor 's today announced the release of Islamic Finance Outlook 2009, its latest annual compendium of topical research and aries on Islamic finance. The new yearbook includes Standard & Poor Standard & Poor 's latest analysis and rating methodologies on almost 40 rated Islamic debt issues and issuers, and an overview of its suite of global benchmark and investable Sharia indices.

While total global sukuk issuance more than halved to $14.9 billion in 2008 from $34 billion in the previous year, Standard & Poor Standard & Poor 's believes the outlook for Islamic finance remains strong. Sharia-compliant assets now total about $700 billion after growth exceeding 10% annually during the past decade.

"The sukuk market suffered heavily in 2008 but we believe the outlook for asset-backed sukuk is positive, despite the doubts raised by the disruption in global financial markets and in structured finance," said Mohamed Damak, credit analyst at Standard & Poor Standard & Poor 's Ratings Services. "When economies begin pulling out of the downturn, we expect Islamic finance to resume its rapid growth. The long-term pipeline for sukuk issuance is healthy, and the market is attracting interest from an increasing number of issuers in both Muslim and non-Muslim countries."

Mr Damak said Islamic financial institutions have remained somewhat insulated from the global financial downturn because Sharia law strictly prohibits them from handling interest-based instruments. The knock-on effects of the current economic slowdown, however, are pressuring Islamic financial institutions and creating new obstacles for their development.

"We see specific sources of risk stemming from the deepening economic slowdown in many countries, scarce liquidity, pronounced stock market declines, and plummeting real estate prices," Mr Damak added. " Standard & Poor Standard & Poor 's has taken some negative rating actions on some Islamic banks over the past six months to reflect these adverse changes."

Standard & Poor Standard & Poor 's continues to widen its coverage of Islamic finance and issued several new ratings on sukuk transactions and takaful companies during 2008, including Tabreed 08 Financing Corp (National Central Colling Co PJSC) and the three tranches of a sukuk issued by Sun Finance Ltd. (Sorouh Abu Dhabi Real Estate LLC).

" Standard & Poor Standard & Poor 's continues to foresee a bright future for Islamic finance and is committed to supporting its expansion by providing objective and independent opinions and benchmarks for Islamic issuers and investors," said Jan Willem Plantagie, Middle East Regional Manager at Standard & Poor Standard & Poor 's. "Through our knowledge of Islamic finance and its key players, we consistently aim to share objective and accurate insights in this developing realm of global finance for the benefit of all investors."

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About Standard & Poor Standard & Poor 's in the Gulf Cooperation Council Standard & Poor Standard & Poor 's is the leading provider of financial market intelligence to customers in the Gulf's credit risk management, wealth management, and data and information markets. Since entering the region in the early 1990's, Standard & Poor Standard & Poor 's has become the largest provider of credit ratings in the G.C.C, rating 114 issuers. In equity markets, Shariah-compliant versions of Standard & Poor Standard & Poor 's global and regional equity market indices - S&P 500, S&P Europe 350, S&P Japan 500 and S&P/IFCI GCC - have created new opportunities for Islamic investors to benchmark their international investments and for asset managers to create new investment products serving the Islamic community. Standard & Poor Standard & Poor 's Fund Services launched a qualitative fund management rating service for regional asset managers in 2007. For further details on Standard & Poor Standard & Poor 's regional capabilities please visit www.gcc.standardandpoors.com A full copy of the S&P Islamic Finance 2009 Credit Survey is available for download at www.gcc.standardandpoors.com

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© Press Release 2009 omar 1.1:zy