Analysts predict that 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. Industry players predict that the current year will remain static but recovery is expected in 2011-12. Qatari and Saudi sukuks will lead the markets.
“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 B.S.C. ©.
According to industry players, growth of sukuk markets will arise from solid core issues that attract solid core investors. Subsequently, a common consensus is the fact that the sukuk market has to become competitive.
Eminent Sukuk practitioners – Khalid Howladar, Senior Credit Officer Asset Backed and Sukuk Finance, Moody’s, Nida Raza, Senior Vice President, Capital Markets, Unicorn Investment Bank, Gregory Man, Senior Associate, Clifford Chance and many more touched upon these pertinent issues concerning the industry at a ‘breakfast briefing’ on the current state of play in sukuk.
The sessions 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. The ‘breakfast briefing’ was held as a prelude to the forthcoming International Islamic Finance Forum 2010 to be held from May 16th – 19th, 2010 at The Monarch Hotel, Dubai, UAE.
Vanessa Heywood, Conference Director, IIR Middle East said, “The Islamic finance industry has faced a number of challenges in recent times. The International Islamic Finance Forum 2010 will provide a timely platform for industry leaders to actively debate critical issues and drive the Islamic finance industry forward.”
