29 July 2019
1 mins clock icon

Investing in Sukuk

Challenges and Opportunities.


By Emirates NBD Research


Sukuk is the fastest  growing segment within the Islamic Finance universe.  Global sukuk outstanding currently exceeds USD 587 bn of which circa  USD 197 bn is in the international format and remainder in the domestic markets of key sharia faith countries. GCC issues dominate the international sukuk space. Some of the opportunities and challenges facing this asset class currently are:


  • Falling USD interest rates.
  • Bid for EM assets: Hunt for Yield.
  • Cheap global liquidity.
  • Improving standardization, innovation and fin-tech adoption.
  • Good fit with green finance.
  • Healthy new issue pipeline.
  • Inclusion of GCC sukuk in the EMBIG index.
  • Opportunity to benefit from M&A activity in the GCC.


  • GDP growth in key Islamic economies is slowing.
  • Risk of fallen angels.
  • Geopolitical concerns in the Middle East.
  • Subdued outlook for oil prices.
  • Complexity and higher cost of doing sukuk vs conventional bonds.
  • Sharia’s prohibition on speculation hinders hedging long term risk. Lack of hedging products.
  • Lack of duration.

Click here to Download Full article

Written By


Emirates NBD Research Research Analyst

There was an error during your feedback!

Your feedback is valuable to us and will help us improve.

Emirates NBD Research

Related Articles

Subscribe to our newsletter and stay updated on the markets

There was an error during your newsletter subscription!

Please try again to stay updated with all the latest financial news and valuable insights.

Thank you for newsletter subscription!

To stay updated with all the latest financial news and valuable insights.