Taking the regional sukuk market to the next level

Looking forward, market conditions should continue to support growth but we also need to consider what structural changes will add depth to the GCC market and assist it in moving to the next level. To date key drivers of the sukuk market growth have included the need for banks’ to prudently manage funding risks and address changing regulatory requirements. Non-bank issuers have followed suite to diversify their funding sources and access cheaper financing. The current trend of influential factors should continue to be supportive for the GCC sukuk market. However, there are additional factors that must be addressed like improved public disclosure by issuers, improving investor knowledge and sukuk market liquidity.