POLL: Sukuk adoption hurdles decrypted

Author: Lizzie Meager | Published: 26 Sep 2016

Islamic bonds benefit buyside and issuers but are hard to find in western capital markets. Several things need to be done to kickstart the global market

What’s needed to kickstart the global sukuk market?

The central benefit of sukuk, or Islamic bonds, is that they give issuers access to a far broader range of investors than a conventional bond can. They perform similarly economically to a regular bond, but their reliance on real, tangible assets and their broader overriding principle of sharing risk makes them a valuable piece of any smart risk management investment portfolio.

But while there exists thriving markets for them in the Middle East and southeast Asian Muslim countries, an absence of western governments is marked. Aside from a few symbolic issues by governments in the UK, South Africa, Hong Kong and Luxembourg, domestic markets have been slow to develop.

Demand for those was strong, with...



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