Unlocking sukuk

Author: Lizzie Meager | Published: 23 Feb 2017

In June 2007, IFLR reported on the surge in calls from various corners of the globe for some form of standardisation or harmonisation in the rapidly growing Islamic finance industry. Concerns were centered around practices for issuing sukuk, Islamic bonds that grant the investor a share in an asset and prohibit interest payments.

Ten years later, those in the market say that standardisation has continued to come up consistently at every conference and industry event, invariably the subject of a keynote speech, ever since the first sukuk was issued. They all agree that a standard form document of some kind would be a boon for the market, speeding up issuance times and eliminating the fiddly complexities and convolutions so many associate with tapping the international sukuk market, as has been seen with other asset classes.

"Ask almost anyone in the Islamic finance industry and they will say they would welcome...