Testing the water

Author: | Published: 1 Sep 2007

The Dubai International Financial Exchange has the distinction of having almost 50% of all sukuk listed on exchanges worldwide (by value). Most of the sukuk listed on the exchange have been issued and are managed by entities established outside the Dubai International Financial Centre. However, on June 18 2007 the exchange admitted to listing sukuk issued and managed by Dubai Sukuk Centre, a company incorporated in the Centre. The listing revealed how the Centre's securities regulator, the Dubai Financial Services Authority, would treat sukuk and cast light on the issue of whether the Authority would require the sukuk manager to be licensed to establish, operate or wind up a collective investment fund and to be subject to the DIFC Collective Investment Law, Law 1 of 2006 (the CIL).

Sukuk: a primer The idea behind sukuk (the plural of the Arab word sak, meaning certificate) is simple. The prohibition on interest under...