IslamicFinance.de

According to Dino Kronfol, CIO at Franklin Templeton Investments, the future is bright for investing in sukuk. He is confident that sukuk could provide the stability that mitigates an uncertain global economy, particularly as more risk management tools become increasingly integrated into sukuk products. Governments and financial institutions are the biggest sukuk issuers globally, so their role in terms of pushing for market growth and development will remain vital. Asia has seen the volume of sukuk issuances decline 4% on average over the past five years. Kronfol thinks this trend should reverse as issuances come from new sources and attract more investors. Already, the number of sukuk issuers is expanding: Nigeria, Pakistan, Hong Kong, Turkey and Indonesia have become more significant in recent years. One further possibility could be Chinese issuers looking to diversify their sources of funding.