Middle East and Far East Sukuk
Produced in partnership with Trowers & Hamlins LLP
Middle East and Far East Sukuk

The following Banking & Finance practice note Produced in partnership with Trowers & Hamlins LLP provides comprehensive and up to date legal information covering:

  • Middle East and Far East Sukuk
  • Middle East and Far East Markets
  • Far East and Malaysia
  • Middle East
  • Structures commonly used and standardisation

This Practice Note provides an overview of the differences between the Sukuk markets in the Middle East and Far East, including recent trends and structures used.

For further information on Sukuk transactions and structures, see Practice Notes: The structure and elements of a Sukuk transaction and Sukuk documentation and transaction mechanics.

Middle East and Far East Markets

The Sukuk market is growing as an alternative to conventional debt financing for companies and investors with a need or desire to follow a Shari’ah-compliant investment strategy. It is also attracting the interest of non-Shari’ah-compliant institutions and investors as a viable alternative to conventional financing. The Sukuk market provides access to a pool of Shari’ah-compliant investors, considered to be an untapped market for conventional institutions.

As a result, although the Sukuk market has already developed into a sophisticated market in the Middle and Far East, recent trends have seen a diversification and globalisation of the market, with more 'conventional' financial hubs (such as Hong Kong, London and Luxembourg) vying with the more traditionally Islamic regions for business. Such expansion is not restricted to regions with a significant or growing Muslim population. Many markets are vying to be considered as an Islamic finance hub, as well as positioning themselves to be able to target Middle Eastern investors through Shari’ah-compliant instruments.

The Islamic finance industry is now a $US 2.4trn industry according to Standard

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