Posted on September 25, 2014

Competitive pricing, product innovation and deeper liquidity have made Shariah-principled finance increasingly appealing as a funding source in the global financial industry, according to a top official of QInvest, said Gulf Times.

"We are seeing strong volumes in global sukuk activity and QInvest expects 2014 issuance to be greater than last year," QInvest head of financial institutions and structured finance, Alex Armstrong, spoke at the inaugural IFN Global Forum 2014 in Dubai. Finding that several issuers from outside the Islamic world - including the Hong Kong Monetary Authority and the UK government - have successfully raised funding through sukuk or Islamic bonds in recent months, he said, "We are expecting others to follow suit."

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Investor demand for Islamic products is strong and QInvest fully expects demand to exceed supply for some time to come, he said, adding with competitive pricing, product innovation and deep liquidity, Islamic finance is becoming an increasingly attractive source of funding for issuers around the world. Year to date, QInvest has advised on $3.25bn sukuk transactions which represents approximately 20% of the US dollar sukuk market. This includes issuances from the government of Hong Kong, Goldman Sachs, Kuveyt Turk, Dar Al Arkan, Turkiye Finans and Al Baraka Turk.

QInvest has been involved in the government of Hong Kong's maiden $1bn sukuk and advised Goldman Sachs on its $500mn sukuk. QInvest is also currently assisting Luxembourg with its debut euro-denominated sukuk.