Qatar issued a QR11bn ($3bn) sukuk (Islamic bond) on 16 January, in a move expected to kick-start the regional sukuk market. The Gulf country also issued QR13bn-worth of conventional loans.

The sukuk issuance is split into one five-year QR4bn bond and a three-year QR7bn issue.

A report from US firm Fitch Ratings says that 2014 could be a “record year” for the sukuk market, with many of the GCC governments likely to use sukuk to raise money to fund extensive spending plans.

Saudi Arabia and Abu Dhabi’s infrastructure plans, along with Dubai’s preparations for the 2020 World Expo and Qatar’s plans for the 2022 Fifa World Cup, are expected to boost the volume of sharia-compliant issuance by sovereigns or related entities.

Oman has not previously been a major issuer, but has also said it will use sukuk to fund infrastructure projects in the next few years.

Globally, the sukuk market is expected to rebound in 2014 compared with a slight decline in issuance in 2013, according to Fitch.

The rating agency estimates that issuance dropped by 12 per cent in 2013 compared with the previous year, reaching $120bn. This dip in volumes was, in part, due to market concerns over the planned tapering of the US bond purchasing programme.

“Demand remains strong and we expect this decline to be a blip in the longer-term trend of steady growth,” says Fitch in a report.