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8 The Investor

Kuwait and Islamic

debt capital markets

By Abdullah Alhaddad Furthermore, the sukuk global footprint has
been expanding, more so in the past six to
ukuk over the course of the last decade seven years. New jurisdictions have tapped
has developed as a viable instrument into the sukuk market. The year 2014 saw
Sto diversify from traditional equity and four new sovereign entrants to the market:
real estate markets in the Gulf Cooperation Hong Kong, Luxembourg, South Africa and
Council (GCC) states. Increasingly, UK. Going forward we expect this trend to
sovereigns, financial institutions and continue.
corporates have looked at this avenue to
raise capital. Kuwait is fast emerging as an important
player in the Islamic debt capital market in
Sukuk gives Islamic financial institutions the GCC. We expect the Kuwait government
a tool to manage short term liquidity as to tap capital markets this year, starting with
well. Since 2014, the International Islamic a conventional bond and we may see a
Liquidity Management Corporation (IILM) sukuk issuance later in 2017.
has been issuing 3-month short term sukuk
that have been very well received by the The Executive Bylaws, Law No. 7 of 2010
market. called for establishment of the Capital

Issue 1 October 2017