"What you see in the sukuk market right now is not growing but I think it is shrinking a little bit in comparison to years before," Hussain Al Qemzi said in an interview. "I see three years before we see an upward trend in sukuk. We will see a stronger comeback afterwards."
Recent sukuk issuances out of the Gulf from companies such as Sharjah Islamic Bank and HSBC Middle East were oversubscribed and raised some hope that Islamic bonds were poised for a revival.
Al Qemzi said Noor Islamic has no plans to issue any sukuk in the near term but is mandated on a few deals, including one for Turkey's Bank Asya, one of four fully Islamic banks in the country.
"The market remains very cautious, and within the GCC (Gulf Cooperation Council), there is still some reluctance," he said. "But we are hopeful of concluding one or two sukuk deals this year."
Al Qemzi said the bank, which recently swung to a profit in the first half of the year, was still aiming to break even by 2012, but might even achieve it this year, given the strength of its recent earnings report.
"We're not out of the woods yet in terms of the market, and we like to be cautious, but it's a possibility," he said. "Our numbers look very good now."
The bank, posted a net profit of Dh85 million ($23.1 million), up from a loss of Dh9 million in the comparable period a year earlier. Revenue came in at Dh386 million.
Al Qemzi said its corporate banking division was the main driver of growth, although he expected consumer banking, particularly online banking, would increasingly play a larger role.