Green sukuk are coming

Author: Lizzie Meager | Published: 28 Feb 2017

It’s only a matter of time before the first green sukuk comes to market, according to industry leaders.

Speakers at a White & Case event last week explained that there’s nothing stopping issuers from drafting a shariah-compliant sukuk save for a lack of top-down support.

In 2016, the climate-aligned bond market grew by 16% to $694 billion, $118 billion worth of which are labelled green. The global sukuk market, which has slowed in recent years, saw $40.3 billion worth of deals issued in the same timeframe. Climate-aligned finance is a fast-growing market that’s open to innovation.

"There’s nothing in the Qu’ran forbidding them, in fact it stresses our responsibility to the environment. But green issues are not as spoken about in the Islamic finance industry as they should be," said Sheikh Bilal Khan, Dome Advisory co-chairman and partner. "As a scholar there is nothing stopping...