Tunisia's government plans to issue the country's first Islamic bond this year as it works to finance a budget deficit swollen by last year's revolution, according to a senior Arab banker.

'They're very serious about it and are now in talks with banks. It will be Tunisia's first sovereign sukuk,' revealed Al Baraka Banking Group chief executive Adnan Yousif  yesterday.

Al Baraka Bank has branches in Tunisia and is consulting with the government on Islamic finance.

'I believe Tunisia has the potential to become the Islamic finance hub for Africa,' Yousif added.-Reuters