The $214 billion global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, said an industry expert during a key summit in London.

"Large pools of Muslim wealth and abundant liquidity have ensured that demand for sukuk exceeds supply," remarked Adnan Halawi, Zawya fixed income team leader while speaking at the sixth London Sukuk Summit.

The event, a premier conference in the Islamic capital markets industry, was held at the Jumeriah Carlton Hotel yesterday.

It specialises in the latest developments and provides an ideal platform for experts and those interested in accessing the industry to discuss key issues, highlight and identify new opportunities and forge new business relationships.

In his presentation 'Sukuk Market: Growth and Diversification', Halawi discussed key growth factors leading to a current outstanding sukuk despite obstacles hindering growth.

He also provided insights into recent developments that have shaped the industry, one of which is diversification as a trend and need in the Islamic bond market.

According to him, the Islamic finance's safe haven, asset-backed nature had led to more investors globally opting for sukuk to diversify portfolios and meet financing and refinancing requirements.

Mena region witnessed a retreat in conventional issuance in favour of sukuk, a trend that is expected to persist should North African states start selling sukuk.

Other findings include geographical expansion, a wider choice of currencies, stock exchange listings, regulatory support measures, structural innovation and increased cross-border issuance.-TradeArabia News Service