On 20 September, we hosted the first session in our Global Islamic Finance and the SDGs Series 2022.

Mustafa Adil, LSEG (London Stock Exchange Group) delivered an update on the state of the green sukuk market, before a panel featuring Richard de Belder, UKIFC, Raja Amir Raja Azwa, HSBC Amanah Malaysia, Hitesh ASARPOTA, Emirates NBD and Sam Dodd, LSEG (London Stock Exchange Group) debated whether green Islamic products like sukuk represented outperformance or ‘double trouble’.

Mustafa’s presentation explained that the market is rapidly growing, with green sukuk more oversubscribed than traditional sukuk. State and quasi-state issuers still represent the majority of the market, but corporate issuers are growing, now standing at 36%. To grow the market further, common standards are needed.

A key theme from the panel discussion was the potential for green sukuk to attract investors who would not otherwise be interested in the sukuk market, but were interested in the sustainability aspects of the product. This has the potential to increase price, making the market more attractive for issuers. Another beneficial aspect of green sukuk is that use-of-proceeds requirements can increase confidence of Shariah investors.

Sign up now for the remaining sessions on 21 September.