ICG-Events are pleased to announce that the fourth annual London Sukuk Summit on the theme of ‘Harnessing the Opportunities for ICM Products in Europe’ will be taking place in May 2010. The conference aims to benefit from participation by financial regulators and supervisors, industry experts, as well as academics, by providing a platform to analyse factors that support the preconditions necessary for a resilient Islamic financial system in Europe.
Sukuk issuances have witnessed a significant spike in the last year amidst signs that the global economy is on the road to recovery. In an Investors Service Special Report, Moody’s have noted that current economic and capital market conditions have spurred the issuance of sukuk by sovereigns and government related entities, a move that Moody’s believes will facilitate the development of a sound Sukuk market. The turnaround in Sukuk this year, posting a 40 percent increase from last year in the first ten months, has also benefited from the introduction of multifarious legislative measures serving to facilitate an enabling environment around the globe where Islamic finance can flourish.
From France to South Korea, there is talk of ushering in Sukuk issuances from governments or quasi-governmental organizations. The mood has certainly turned from the gloom of last year to one that is extremely positive. Preliminary calculations show that the growth in 2009 has completely off-set the contraction in the market experienced in 2008.
To a great extent, the challenge posed by the global economic environment has served to shape the come-back of Sukuks this year in terms of the composition of the market. Whereas corporations once led the way, the past year has witnessed sovereign and government related issuances overtaking the corporations as Sukuks open a gateway for facilitating the various programs aimed at rejuvenating economic activity whilst concurrently managing fiscal deficits.