Bahrain plans an Islamic bond issue of about $530.5 million (Dh1.9 billion) in its local currency to cover its budget deficit, the Gulf kingdom's central bank governor said. The sovereign Islamic bond would be the first government sukuk to be issued in dinars, and would come at the "appropriate time", Rasheed Al Maraj told the Asharq Al Awsat newspaper. Maraj said economic growth will slow to about three per cent in 2009 from 6.8 per cent in 2008. His forecast was unchanged from March. "This is realistic in view of the data we see," he said. Earlier this year, Bahrain issued a $750m sovereign sukuk, the first in the Gulf this year. The issue saw strong demand, attracting an order book of about $4bn. In April, the central bank said Bahrain was planning to launch a BD250m (Dh2.4bn) three-year sovereign bond. "The initial plan for sukuk issuance stipulates that we issue sukuk in dollars, and then one in Bahraini dinar to cover a deficit in the state budget," Maraj said. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .