Dubai Soon To Publish New Standards For Islamic Bonds

By ExpatBriefing.com Editorial 02 December, 2013

Dubai plans to publish new standards for issuing and trading Islamic bonds within the next one or two weeks, says the chairman of Dubai Financial Market, Essa Kazim.

The emirate said in January of this year that it aims to become a center for the issuance and trading of sukuk, as part of a wider plan to develop its Islamic business sector.

Worldwide sukuk issuance is set to hit USD100bn this year, according to Standard & Poor's; and a Thomson Reuters study released this month predicts that the figure will reach USD237bn in 2018.

Sales of sukuk in Dubai are expected to surge thanks to the emirate's winning bid to host Expo 2020, according to the chief executive officer of Noor Islamic Bank, Hussain Al Qemzi.

However, the growth of Shariah-compliant debt has in the past been slowed by disagreements among scholars, issuers and investors across the world regarding what types of debt structures are religiously permissible.

Dubai hopes to attract more international business by providing clear standards for sukuk, and assuring investors that they conform to Islamic law.

Tags: Investment | Business | Law | Agreements | Standards | Islamic Finance | Alternative Investment | Dubai | Expats |

 





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