News that the UK Treasury will introduce specific regulation for issuance of Islamic bonds (sukuk) is an indicator of the growing reach and allure of Islamic finance in general. UBS has responded to the growing demand by creating a new Global Islamic Finance Group (GIFG), which has already notched up a number of firsts.
UBS reckons that Islamic (sharia-compliant) assets total between $300bn and $500bn globally and are growing at 10% to 15% a year. In the Gulf states, they represent only about 15% of total Gulf assets, and the bank believes there is a “tremendous” opportunity for this sum to grow.
