GLOBAL: Participating in the IFN Global Islamic Investors Roundtable at IFN Global 2014, Damian White, the treasurer of Noor Bank, highlighted that in the Sukuk market there is a challenge for banks as yields are going down hence investors will need to start looking for leverage and opportunities elsewhere. “We should see increased innovation coming as strong demand continues pressure,” said White.
Separately, Mohieddine Kronfol, Franklin Templeton Investments Middle East’s chief investment officer — global Sukuk and MENA fixed income, noted: “We should be focusing on non-US dollar yield curves as we move into new markets. It is important to give investors the stability they need from fixed income investments. We don’t have enough non-US dollar international issues and this is important for the ongoing growth of the market; we should hope that new sovereigns like Turkey and South Africa follow their initial US dollar debuts with local currency issuances.” Kronfol also highlighted that policymakers have not been doing enough to build the Islamic capital markets and that more direct action is needed.
Mohammed Reza Arabi, the deputy head of market and issuers supervision of Iran’s Securities & Exchange Organization, voiced his hope that negotiations will succeed and sanctions will be removed from Iran very soon — noting that there is a huge market for investment especially in fields like oil and gas and infrastructure once sanctions are lifted.