Larger transaction sizes and higher ratios of Islamic tranches predicted in project finance market

Complex deals are increasingly featuring an Islamic finance component, which is further spurring innovation as institutions develop the next generation of Islamic finance solutions to cope with the huge boom in real estate, LNG, energy and infrastructure developments. With Islamic banks now having gained major experience in increasingly complex transactions and conventional institutions further sharpening their own capabilities, the market is now set to expand to see even larger transaction sizes in the year ahead.

2006 was a watershed year for Islamic project finance, with some 12.65% of regional project finance being Islamically-structured - almost double the 6.58% of 2005. Furthermore, some large deals included the ratio of the Islamic component at over 40% of the total amount raised. Industry experts are now predicting that the future potential of Sukuk as a mode of finance and Islamic private equity funds showing an appetite for infrastructure investments will provide the impetus for the next wave of growth - and also attract non-bank investors. In addition, more and more corporate end-users are looking to the Islamic financial markets as a source of capital, and these forces will create the market conditions for more record-breaking years in 2007 and beyond.

Recognising this innovation, the 2nd Annual World Islamic Infrastructure Finance Conference (WIIFC), to be held on the 4th and 5th of November 2007 at the Four Seasons Hotel in Doha, Qatar, features the International Industry Award ceremony, which is presented in association with KPMG to promote excellence in the global Islamic project finance environment. The award will be presented at the WIIFC Gala Dinner, which will be hosted by Bahrain's Borouj Capital.

WIIFC 2007 will also feature a session focusing on the main theme of the conference, Innovation in Islamic Project Finance. This session will address the increasing sophistication of Islamically-structured transactions, what will the next generation of Islamic financial solutions look like and assess to what extent Islamic financial institutions are ready for the challenges of increasingly complex transactions.

The conference has attracted significant players in the Islamic finance market as partners and sponsors, including QNB Al Islamic, Borouj Capital, Barclays Capital, Masraf Al Rayan, Ernst & Young, Investment House, Al Safa Islamic Bank, Doha Islamic Bank, Calyon Corporate & Investment Bank, Fitch Ratings, Doha Bank, International Centre for Education in Islamic Finance (INCEIF), Calyx Financial, KPMG, DLA Piper, and Qatar Airways.

More than 250 senior decision-makers representing market-leading financial institutions and developers are expected to attend WIIFC 2007 to map out the future landscape for mega-deals and identify the next generation of Islamic financing solutions.