The UAE will remain the cornerstone of the Islamic bond (Sukuk) market in the region which has already witnessed Dh11 billion ($3 billion) of overall issuances during the current year, said industry experts at a key forum held in Dubai.

The global sukuk issuances including that of Malaysia for 2009 surged to Dh31 billion ($8.5 billion), they said, adding that a further increase was expected this year.

The industry experts were speaking at the 'International Islamic Finance Forum 2010' being held at The Monarch Hotel, Dubai.

These statements resounded optimism from key speakers including Mohammed Dawood, director of Capital Markets, HSBC Amanah, Debashish Dey, partner head of Capital Markets and Structured Finance Middle East, Clifford Chance and Nida Raza SVP Capital Markets, Unicorn Investment Bank among others.

These comments also indicated the growth of Islamic finance both within the GCC region and globally, they added.

“The sukuk markets will pick up in the coming months. However, governments need to give the Islamic finance industry a stronger framework which could be common around the GCC region,” remarked Mohammed Dawood.

Key topics including the future of Islamic finance which will be discussed by the leaders of the Central Banks and high profile heads of Islamic Banking during the four-day event.

“There is a shift towards local currency syndication for corporate issuances or finances. However, authorities need to develop a deep local currency market. It is also witnessed that sukuk growth has been higher in the overall industry,” said Ähsan Ali, Head of Islamic Origination, Standard Chartered Saadiq.

The Forum with the theme 'Driving the Islamic Finance Industry Forward' is being organized by IIR Middle East and will touch upon the enormous potential in Shariah Compliant financing while addressing key challenges and the future of Sukuk.-TradeArabia News Service