Sukuk under development
SUPPLEMENT - KUWAIT - September 01, 2009
The evolution of the Islamic finance market from simple, low-return instruments to more sophisticated structures has generated increased attention in recent years. One of the more important recent evolutions in Islamic finance has been the development of the sukuk market.
Even though by global standards the size of the sukuk market remains relatively small, it has experienced much growth. Factors contributing to this growth are numerous and include: (i) increasing investment activities in the Middle East and Asia, and related increase in the need for funding; (ii) surplus savings and reserves in the Middle East and Asia; (iii) investors' desire for higher returns and greater diversification of risk; (iv) the need for medium to long term investment returns, which was previously lacking in shariah compliant instruments but which is addressed by sukuk; (v) increasing desire for a secondary trading of Islamic instruments that has positioned sukuk instruments at the forefront;...
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