The Dow Jones Citigroup Sukuk Index, which measures the performance of Islamic bonds globally, closed at 120.50 on June 23, matching its May 6 high for the year and leaving it 3.8 percent short of the record set Nov. 25. The index has climbed 6.2 percent from its low in December, helped by Dubai World's agreement to restructure part of its $23.5 billion of debt.

'That was a big boost for the global sukuk market,' said Zeid Ayer, who helps manage $1.6 billion of Shariah-compliant equities and bonds in Kuala Lumpur for Principal Global Investors and Malaysia's CIMB Group Holdings Bhd., which have an asset management joint venture. 'Restructuring deals help to bring a lot more clarity to the situation.'€

Shariah-compliant bonds have weathered the European debt crisis better than notes in emerging markets. Islamic bonds returned 6 percent so far this year, according to the HSBC/NASDAQ Dubai Listed US Dollar Sukuk Index, while regular debt in developing markets gained 5.45 percent, JPMorgan Chase & Co.'s EMBI Global Diversified Index shows.

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