Jersey Finance has opened an office in Abu Dhabi and is looking at how it can penetrate further into the Gulf region with plans to target Saudi Arabia.
Mr Ahmed said: ‘The growth in anticipated demand provides Jersey with further opportunities to acquire a larger share of the sukuk market and increase its footprint in the Islamic finance industry.’
He said that Jersey had already been playing an important role by providing a reputable jurisdiction for special purpose vehicles used for sukuk issuances.
‘There is no doubt that sukuk offers the Island an opportunity to engage in a rapidly growing sector. It is also attractive precisely because it offers greater stability than traditionally western forms of debt have been able to offer in recent years,’ he said
Mr Ahmed said that the exponential rise in demand was primarily a result of the double-digit growth of the Islamic banking industry and the increasing appetite for credible, Shari’a compliant, liquid securities.
He said the demand principally comes from Islamic financial institutions, fund managers and high net worth individuals.
‘The Eurozone debt crisis has also prompted renewed interest from conventional institutions because these products are backed by real assets,’ he said.
He said that currently the main constraint on the sukuk market was a lack of supply of sukuk securities. Ernst & Young say that has not been helped by the lack of a global standardised platform to facilitate trading.
(jersey Evening Post / 29 Oct 2012)
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com