Until recently, the Islamic debt market was expanding at a clip, doubling in size every year from 2004 to reach a total outstanding figure of $90bn. Even the British government was mulling an issue to burnish its credentials as a centre for Islamic finance.

Yet, in the first eight months of this year, issuance fell to only $14bn compared to $23bn over the same period last year, according to Standards & Poor’s, the ratings agency.