As issuers look for alternatives to the volatile European
and US capital markets, the dual wakala-mudaraba sukuk
will be the structure of choice for issuers looking to tap
Islamic finance investors.
The structure was first used by HSBC Middle East for a $500
million issuance in 2011. It involved the addition of a
mudaraba structure to an existing wakala
structure to accommodate recent amendments to the UAEs
real estate laws in a way that complied with the
shariah requirements of HSBC while being marketable to
Islamic investors globally.