The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), S&P Global Ratings in collaboration with the Islamic Development Bank Group Business Forum (THIQAH), jointly organized a webinar titled: “The Islamic Finance and Sukuk Markets” on Wednesday, June 2, 2021.
The webinar focused on emerging markets to explore the effective tools for Sustainable Development in Commonwealth of Independent States (CIS) countries and Turkey: The Islamic Finance and Sukuk Markets.
The discussions during the webinar revolved around key points including the outlook of the Islamic finance industry; progress on the standardization of the industry, and whether it is achievable; intersection between Islamic finance and Environmental Social Governance (ESG) principles; how Fintech could disrupt the industry and prospects for Islamic finance in CIS and Turkey.
Despite the severe consequences of COVID-19 pandemic, the Islamic capital markets and global Sukuk, both sovereign and corporate, have displayed some resilience. The webinar focused on the most current issues affecting Islamic capital markets and debt instruments such as Sukuk to keep all interested parties informed of the market developments and innovations, provide a platform for dialogue with peers and give all participants a voice in contributing to the future direction of the Islamic debt and capital markets. The integration of environmental, social and governance (ESG) considerations into investment mandates is expected to drive the development of Green & Socially responsible investing (SRI) sukuk offerings. Much work would be needed in order to encourage issuers to implement sustainable finance guidelines. While Islamic bonds still only make up a small part of green bonds, the sector is growing apace — and a number of high-profile deals over the past couple of months have really cast it into the spotlight.
Ms. Elena Eliseyenko, head of S&P Global Ratings, Russia/CIS/CEE commented: “Having been honored with prestigious global awards in Islamic finance, we at S&P Global Ratings see huge potential for the development of Islamic finance in the region. We are delighted to see positive movement in sustainability and progress in establishing better legal and regulatory infrastructure for Islamic finance in the region.”
Mr. Ayman Sejiny, CEO of ICD, stated that “Islamic finance and Sukuk markets are gaining traction, and they will help member nations achieve their long-term development goals. A concerted effort needs also to be made to uphold strong moral and ethical standards.”
The dialogue provided an avenue to exchange views and gather feedback on sovereign participation in the Sukuk market and raise public debt via Sukuk issuance. Also, the discussion provided an issuer’s road map which will ultimately lead to concrete solutions for potential sovereign issuers. In addition to sustainable Sukuk, the webinar shed light on the emerging trends the Sukuk market holds post-COVID and into 2021 in the CIS region.