Sukuk industry set for 'unprecedented growth'
Dubai, June 7, 2012
The global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, an expert said.
“Large pools of Muslim wealth and abundant liquidity have ensured that demand for sukuk still exceeds supply,” said Adnan Halawi, leader of the fixed income team at business and financial intelligence company Zawya, at the 6th London Sukuk Summit held in London on June 6 and 7.
In his presentation entitled ‘Sukuk Market: Growth and Diversification’, Halawi discussed key growth factors leading to a current outstanding sukuk market of $214 billion despite the obstacles hindering growth.
Halawi also provided insights into the recent developments that have shaped the industry, one of which is the rise of diversification as a trend and a need in the Islamic bond market. Other findings include geographical expansion, a wider choice of currencies, stock exchange listings, regulatory support measures, structural innovation, and increased cross-border issuance.
“Islamic finance’s safe-haven, asset-backed nature has led to more and more investors, globally, opting for sukuk to diversify portfolios and meet financing and refinancing requirements,” he said.
Halawi cited data to show that the Middle East and North Africa region witnessed a retreat in conventional issuance in favor of sukuk, a trend that is expected to persist should North African states start selling sukuk. – TradeArabia News Service
More Finance & Capital Market Stories
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards