Sukuk and security markets highlighted at the Oman Islamic Banking and Finance Conference 2012
- Oman: Saturday, June 09 - 2012 at 09:21
- PRESS RELEASE
The second session of the second day of the Oman Islamic Banking and Finance Conference 2012 dealt with the Sukuk market in terms of opportunities, challenges and lessons to learnt by Oman on the same.
Mr. Hussain Al-Yafai, Director-Debt Capital Markets, MENA, Standard Chartered Bank in his topic of Raising Debt Capital via Sukuk Markets stated that "It's very important to develop the local currency sukuk markets and Oman will hopefully take a key step towards that progress. The benefits of the Sukuk are that at the end of the day it's a senior unsecured obligation of the issuer, so it's very similar to a conventional bond in terms of its benefits. You get a longer tenure. By looking at the sukuk markets, you get to tap both liquidities-Islamic liquidity and the conventional liquidity, so you get a very healthy participation rate. More people are turning to Sukuks because there is a pent up demand from an Islamic liquidity point of view, there are lots of Islamic accounts that are placing their funds with banks at zero profit, so when they see an opportunity that will get them a bit more profit they would really grab it."
A Panel Discussion entitled Challenges and Opportunities in Islamic Securities Market in Oman was moderated by Mr. Noaman Abdul Majid, Country Manager-Oman, Pak Oman Investment Company and saw panelists including the above two speakers along with Mr. Anzal Mohammed, Partner-International Capital Markets, Allen & Overy LLP, sharing their views on the topic of discussion.
Mr. Mohammed said "It is important that the government of Oman takes the lead in the development of the Islamic Finance industry in Oman to make sure that the right rules and regulations are put in place and foundations are set in order for the industry to flourish. It is important that the government publicly demonstrates its commitment to Islamic Finance and in order to do that an international sukuk transaction from the government of Oman is a very important public statement of intent in terms of how the government views Islamic Finance generally and also allows other government related entities and corporates to follow as well, so from a public perception perspective, it's a very real and positive step in terms of how the government can demonstrate that."
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