An IFLR guide to the evolution of global sukuk structures

Author: IFLR Correspondent | Published: 7 May 2014
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Today, Islamic finance is one of the most exciting areas of capital markets. Countries from Korea to Kazakhstan are looking to develop Islamic finance standards, and international corporates are innovating structures and instruments. While Malaysia remains the leader, with the deepest and most liquid domestic market, other countries are hot on its heels. Dubai has recently published new sukuk standards, London has set its sights on becoming the first non-Muslim country to issue a sukuk, and Hong Kong and Singapore have both expressed ambitions to become Islamic finance hubs. But internationalisation has brought challenges. The market lacks a unified regulatory framework, with different countries adopting their own interpretations of shariah, a problem exacerbated by the proliferation of increasingly complex structures.

As Islamic finance continues to evolve, this page provides an archive of IFLR’s coverage of recent key developments in the sukuk space.

ASIA

Asia bank capital series: why Malaysia hasn’t yet seen a Basel III-compliant sukuk Although Malaysia is the largest Islamic finance market in the world, its Islamic banks have not yet issued a shariah-compliant sukuk

Axiata sukuk signals use of new assets in Islamic finance The deal marks a new level of flexibility for underlying assets in an individual deal

Sabana reit convertible paves way for Islamic finance growth Sabana Reit’s sukuk signals Singapore’s push to become an Islamic financial centre

EUROPE

UK sukuk first explained  The UK's trailblazing sukuk developed an innovative structure, setting a benchmark that is hoped will inspire the country's corporates to tap the lucrative shariah market

London’s first sukuk: how to make it happen The UK will encounter challenges in its bid to become the first non-Muslim country to issue a sukuk

Turkey’s first non-ijara sukuk dissected Turkiye Finans’ bellwether non-ijara sukuk paves the way for a wider variety of Turkish sukuk issuers

MIDDLE EAST AND AFRICA

Dubai's new sukuk standards explained   New issuing and trading standards are a key part of Dubai's strategy to increase global investors' confidence in sukuk structures

How Sadara-Dow will transform Saudi chemicals market The deal is the biggest of its kind and could be transformative for the Middle East's petrochemicals sector

Breakthrough sukuk opens new funding vistas in GCC Al Bayan Group was the first Saudi company to tap the Malaysian capital markets. The deal promises to open up a new investor base for issuers in the country

Saudi sukuk pushes Islamic finance tenors Saudi Electricity Company issued the world's first 30-year international sukuk, revealing new possibilities for Islamic finance

Is Dubai building another asset bubble? IFLR investigates the emirate’s resurgence, and asks whether Dubai is embarking on the same strategy that led to its unprecedented failure in 2008

Egypt poised for sovereign sukuk The Egyptian Financial Supervisory Authority's announcement of draft sukuk laws signalled the long-awaited beginnings of an Islamic finance market in the country

The challenges for Islamic finance in Africa Despite its clear potential, Africa’s nascent Islamic finance industry faces significant challenges

GLOBAL ISSUES

In search of a global Islamic finance hub As Islamic finance soars in popularity, IFLR examines which territory is leading the race to become the global hub for shariah business

Shariah-compliant Basel III: structural issues explained The challenges ahead in the drive to create shariah-compliant bank capital structures in the GCC

New short-term sukuk market to boost liquidity The International Islamic Liquidity Management's short-term sukuk programme gives Shariah-compliant financial institutions a new way to manage their liquidity

How the global Islamic finance market developed The global head of Islamic finance at Clifford Chance describes how the first global sovereign sukuk changed the market