Nasser Al Shaikh stresses on Innovation in Sukuk Issuance at the Sukuk World Conference
• Sukuk annual growth is estimated at 50 %
• GCC accounted for 33% with the largest Sukuk issued in the UAE
The growing importance of Sukuk as an investment vehicle as well as innovations in Sukuk were under the spotlight at the Sukuk World Conference which took place in Abu Dhabi from June 24 to 27.
Nasser Bin Hassan Al Shaikh, Chief Executive Officer of National Bonds Corporation, in his presentation on “Innovation in Sukuk Issuance” highlighted the importance of Sukuk in the development of Middle East capital markets. The development of the region’s capital markets depends on allowing investors more choice in addition to effective ways to manage risk and liquidity, he said.
Al-Shaikh explained that Sukuk were practically non-existent at the turn of the century. However, Sukuk now have been growing at an annual rate close to 50 per cent on a global scale. The size of the Sukuk Market is now estimated at $50 billion and is expected to reach $150 billion by 2010. In the GCC alone the Sukuk market has accounted for $16.5 billion or 33% of the total global Sukuk issuance where the largest Sukuk in the world has been issued in the UAE.
Al-Shaikh also referred to the major role that Sukuk play in overcoming growth challenges by mobilising resources and funding projects. In this regard he cited the success of Islamic Development Bank and the Qatar Global Sukuk in raising funds for infrastructure development.
National Bonds Corporation launched National Bonds in 2006 in response to the overwhelming demand for Shari’a complaint savings products and to instill a saving culture in the UAE community, explained Al-Shaikh
“National Bonds has many features that make it a competitive saving scheme accessible to various segments of the population. Within a year, the number of Bondholders surpassed 340,000, with their combined investment reaching more than a billion dirhams. In addition to annual indicative profits and the chance to win prizes in monthly draws offered by National Bonds Corporation, Bondholders can benefit from the investment initiatives of National Bonds in community development. We have so far launched ‘National Properties’ and ‘Madaares PJSC’ for the prudent deployment of our funds in real estate and education sectors respectively. We are also studying similar initiatives in healthcare.“
