The Islamic Finance and The Sukuk Market

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The Islamic finance industry has been evolving and growing rapidly for the past decade. The recent global financial meltdown has open opportunity to Islamic finance to offer a new outlooks and effective solutions to economics problems. Economists are now looking to the east, learning lessons and seeing advantage of Islamic finance. Since then, serious research on Islamic financial system has been carried out and Islamic financial system has been an interesting area of discussion.
Today, Islamic finance has shown impressive performance with the Islamic finance industry’s assets are estimated to have amounted to $1.8 trillion as at end-2013, recording an over 16% y-o-y growth according to KFH-Research. In a newly released report “Islamic Finance Outlook 2014” by Kuwait Finance House Research Limited (KFHR), the Islamic finance industry is forecasted to continue to chart tremendous double digit growth rates across all sectors, with total industry assets estimated to reach approximately $2.1 trillion as at end-2014.
The Sukuk market has been one of the most popular sectors in Islamic finance over the past few years. According to Zawya, 2011 was a record year for these relatively young assets which reached $84.4 billion. In 2012 Sukuk issuance is already shaping up to be a record year with $68 billion issued in the first half, an increase of 55% over the same period of 2011. Sukuk is an Islamic alternative of conventional bonds based on

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