Saudi Arabia issued $10.5 billion in sukuk in 2012, representing a 278 percent year-on-year increase, positioning the kingdom as the second major global issuer of sukuk after Malaysia, according to a new Kuwait Finance House report.

The role of sukuk, the Islamic equivalent of bonds, in the development of debt capital markets will be among the key areas for discussion at the upcoming Ministry of Finance/Euromoney Saudi Arabia Conference taking place in Riyadh on May 7 and 8 at Al Faisaliah Hotel.

Bankers, thought-leaders and government officials will examine Saudi Arabia’s increasingly high-profile role as a regional and global financial power.

The rate of Sukuk issuance accelerated significantly throughout 2012 and into 2013, particularly as new players entered the market.

The amounts raised through Sukuk are also becoming more substantial – total Sukuk issuance in the Gulf increased to $24 billion last year.

In a major panel discussion held at the event, the issues of Saudi Sovereign Sukuk and how the sukuk market fits into the Kingdom’s government plans for economic development will be analysed. The panel will review the progress of sukuk in Saudi Arabia in 2013, and will review the pipeline for 2013 as well as the emerging yield curve.

Richard Banks, director, Emerging Markets, Euromoney Conferences, said: “The major areas of focus for the Euromoney Conference will be government finance, corporate finance, and the financial system structure, and all three are strong associated with rise of Sukuk and the wider development of the Islamic financial industry.

“2012 marked a significant step-change in the rate of Sukuk issuance, and it’s important that we evaluate what this means for the Kingdom of Saudi Arabia and the wider financial sector.”

The Euromoney Saudi Arabia Conference is being held in partnership with the Ministry of Finance, with lead sponsors including Aseer, BNP Paribas, Gulf International Bank, HSBC & NCB. – TradeArabia News Service