“Kuwait Finance House (KFH) volume traded in the secondary Sukuk market surpasses USD 3 billion for the year 2014” said Abdul-Wahab Essa Al-Roshoud, GM — Treasury at Kuwait Finance House. He indicated that such volume is yet another outstanding achievement to be added to KFH performance as a prime dealer in Kuwait and a global Sukuk market maker.
Al-Roshoud added, in a press release that the bank managed in 2014 to develop the secondary Sukuk market for issuance of short term Sukuk by International Islamic Liquidity Management, IILM on the global level since KFH was nominated “primary Dealer in Kuwait.
He emphasized that these deals have contributed significantly to the increase of liquidity and support of Islamic Financial Markets. Sukuk boost Islamic finance, strengthen its pillars and highlight KFH role as a leadership in this market.
Al-Roshoud stated that Sukuk are the most significant and powerful low risk investment finance tool which contributes effectively to the process of encountering liquidity crises. Sukuk are characterized as instruments of high liquidity, active secondary market, flexibility and good returns. Sukuks play as a significant investment outlet for banks and an effective tool to manage liquidity in accordance with CBK standard liquidity ratios and increase shareholders profit.
Several governments’ worldwide i.e. United Kingdom, Luxemburg, South Africa and Sharjah have issued Sovereignty Sukuk. Other countries such as Jordan and Tunisia have expressed their interest in issuing Sukuk as they contribute significantly in financing income generating and productive projects, thus activating economic growth.
Al-Roshoud reiterated that one of the main significant factors in Sukuk issuance is to provide liquidity to infrastructure projects in GCC countries, Asia and Africa. He highlighted that Sukuk have played a prime role in financing infrastructure projects including public and private sectors.