Monday, January 5, 2009

Growing Sukuk investment opportunities

Increasing Demand for Sukuk issues among issuers from Muslim
countries as well as other jurisdictions
Islamic financial institutions are seeking to diversify their portfolio
and increase their portfolio size of tradable instruments with fixed
income profile
• Sukuk can be used to create Sukuk funds for retail distribution
• Once Sukuk Fund concept become more popular demand for Sukuk
issues will surge exponentially
• Sukuk can be developed into a Money Market instrument
• Sukuk can play a major role in the development of Islamic Inter-
Bank or Short term Islamic Finance market
• Appetite for Sukuk among Reserve Managers and non-bank
financial institutions increasing
– Central banks, state fund managers, insurance & takaful companies,
are keen to invest in Sukuk issues as seen in all the sovereign sukuk
issues
.
– Islamic FI’s and also Western FI’s