Sukuk Potential

The European corporate sector has a huge demand for the long-term funding. As of the rising regulatory capital requirements by the financial institutions, there is a good opportunity here for Sukuk to act as another alternative of funding source.

Long-term funding via Sukuk has proved to be quite successful in recent years. The dollar Sukuk market has tens of issuances with maturities up to 10 and 20 years, many of which fund the financial institutions’ Basel 3 capital requirements. Further, Sukuk have also become a sound funding option for sovereign deficits or project finance worldwide, with various structures and nature of underlying assets.

Kareem Maher