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Thursday, 7 April 2016

Nasdaq Dubai welcomes new sukuk listings

Nasdaq Dubai has welcomed the listing of two sukuk issued by the government of Indonesia with a total value of $2.5 billion.
The total nominal value of sukuk currently listed on Dubai's exchanges has now reached $42.31 billion, strengthening its position as the largest centre globally for Islamic bond listings. The listings support the growth of Dubai as the global capital of the Islamic Economy under the initiative launched by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minster of the UAE, and Ruler of Dubai. Nasdaq Dubai is the largest exchange in the world for sukuk listings at $39.56 billion. Dubai Financial Market has sukuk listings of $2.75 billion.

Essa Kazim, governor of Dubai International Financial Centre (DIFC) and secretary general of the Dubai Islamic Economy Development Centre (DIEDC), said: "These substantial listings confirm the international reach of Dubai's Islamic capital markets as the emirate accelerates its expansion as the gobal capital of the Islamic Economy. Our expanding relationship with Indonesia, the world's most populous Muslim country, strengthens the development of the financial infrastructure of both countries for the benefit of their economies and citizens."Bambang Bodjonegoro, the Indonesian Minister of Finance, said: "Our latest Sukuk issuances confirm Indonesia's commitment to supporting the Islamic capital markets, and our choice of Nasdaq Dubai for listing provides us with close links to regional and international investors. We look forward to issuing further Sukuk in due course under our 2012 Trust Certificate Issuance Program, providing further sources for government infrastructure development financing as well as new opportunities for investors around the world."

The latest two Sukuk listings by the Indonesian government took place on March 31, 2016. They bring its total Sukuk listings on the exchange to $8.5 billion, following its listing last year of four Sukuk with a total nominal value of $6 billion.
Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: "The exchange welcomes Sukuk listings from around the world by sovereign issuers as well as multilateral organisations and private entities active in a wide range of industries. As the Sukuk sector expands further we will support its development in every way possible making use of the Islamic capital markets knowledge and expertise available in the UAE."

Hamed Ali, chief executive of Nasdaq Dubai, said: "We are committed to providing a responsive and flexible listing framework that meets the needs of Sukuk issuers, including enhanced listing procedures that meet their commercial needs. We aim to support our issuers on every level, from regulatory excellence to administrative reliability and regional and global visibility.

(Khaleej Times / 06 April 2016)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Indonesia lacks commitment to develop Islamic finance

Indonesia lacks the political commitment needed to develop Islamic finance, causing it to lag behind Malaysia in that area, experts have said.
"In Malaysia, there is a top-down approach, the government aims to be the global Islamic financial hub," Senior economist for the British Embassy in Jakarta, Edi Wiyono, told thejakartapost.com on Tuesday.
Meanwhile, in Indonesia, Islamic finance has grown from the bottom-up, with the public-initiated establishment of Bank Muamalat, the first sharia bank in Indonesia, he added.
Indonesian sharia bank assets accounted for 5 percent of conventional banking assets in 2015. In the terms of sukuk, Indonesia only had 4 percent while Malaysian shares reached 67 percent.
However, Indonesia is still the biggest retail sharia market in the world but the contributions of sharia finance in big projects, such as infrastructure, are still lacking.
 "The government must give tax incentives to corporations to issue more sukuk in the market. Because technically the rating process and the sharia ratification are more complicated and thus more expensive compared to the conventional bonds," University of East London professor of Islamic Finance, Siraj Sait said.
Along with a more complicated rating process, sharia experts were needed to speed up sukuk issuance.

"Getting a pool of talent is important, if the ambition of Indonesia is to move from the 5 percent trap, it needs to prioritize human development. The challenge that Indonesia faces is in the area of human capital," Siraj said. 

(The Jakarta Post / 07 April 2016)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

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