Investments in Islamic bonds known as “sukuk” are set to grow worldwide as financial centres vie to tap an increasing appetite for Muslim-friendly debt, experts and officials said yesterday.
The global value of outstanding sukuk was $269.4 billion at the end of 2013, but the market is expected to expand at a double-digit rate, said the governor of Dubai International Financial Centre, Essa Kazim.
“The sukuk market is likely to sustain double-digit growth in the next three years with assets in Islamic finance expected to reach $2.8 trillion by 2015,” he told participants at the 10th World Islamic Economic Forum in Dubai.
Last year the Gulf emirate set itself a target to become a global hub for Islam-compliant products and services within three years.
Kazim said Dubai was now the third global centre for sukuk following the recent listing of $750 million in such bonds by its government, and plans by Hong Kong to list its first successful offering of $1bn on Nasdaq Dubai.
Kuala Lumpur and London continue to be the main centres for sukuk.
