The Islamic bond market, which remains static this year, is set to pick up in 2011-12 with Qatari and Saudi spearheading the industry growth, according to industry experts.
Now is a pivotal time for the global Islamic finance industry as sukuks are expected to grow in importance on the radar of global investors, they noted.
“The market is changing wherein the cost of capital is becoming important. In the medium to long term, markets need a lot more funds, more listings and finally, more players to develop this market,” said Nida Raza, senior vice president – Capital Markets, Unicorn Investment Bank.
Nida was joined by eminent Sukuk practitioners - Khalid Howladar, senior credit officer Asset Backed and Sukuk Finance, Moody’s, Gregory Man, senior associate, Clifford Chance and many others at a ‘breakfast briefing’ on the current state of play in sukuk.
The experts touched upon several pertinent issues concerning the Sukuk industry at the meeting which was held as a prelude to an upcoming Islamic Finance Forum in Dubai.
The International Islamic Finance Forum 2010 – Driving the Islamic Finance Industry Forward – is being organized by IIR Middle East from May 16 to 19 at The Monarch Hotel. It will discuss the enormous potential in Shariah compliant financing while addressing key challenges and the future of Sukuk.
Vanessa Heywood, conference director of IIR Middle East, said the Islamic finance industry had faced a number of challenges in recent times.
'The forum will provide a timely platform for industry leaders to actively debate critical issues and drive the Islamic finance industry forward,' she noted.
The presentations and panel discussions by sukuk experts will provide insightful learning into the industry and help companies examine topical issues besides offering extensive industry networking opportunities.
The breakfast meeting gave a legal perspective on risk in sukuk and explored loss given default in secured and unsecured sukuk. It also examined the recent Dar Al Arkan issuance.
Source : TradeArabia News Service