KUALA LUMPUR: The rise of sukuk, driven by the growing influence of investors who want syariah-compliant investment and savings products, opens new opportunities in Islamic economies, says HSBC Bank Malaysia Bhd.
In a statement, it said interest was strong in Gulf Cooperation Council member states as well as in growing economies such as Malaysia and Turkey.
For those seeking finance, syariah-compliant debt offers access to the large pool of capital in oil-rich countries in the Middle East and South-East Asia.
The bank said sukuk also had broad appeal, particularly in the Muslim world, where borrowers were attracted by the prospects of cross-border flows from the Gulf countries.
Meanwhile, HSBC Amanah Malaysia chief executive officer Rafe Haneef said Japan’s Financial Services Authority, which had been promoting the growth of its syariah-compliant finance sector, would secure Japan’s rightful place as a leading financial market in a fast evolving global system.
“It will also strengthen links with the Middle East and South-East Asia – two of Japan’s fastest growing export markets,” he added. — Bernama