Islamic bonds worth $10bn in the offing

The financial crisis that has gripped the global markets has proved to the whole world that Islamic finance is capable of weathering this sort of untoward market behaviour because of its inherent strength, according to a top official of Standard Chartered Bank.

Referring to the slow-down in Islamic bond (Sukuk) market, Afaq Khan, CEO, Standard Chartered Saadiq, said this year is likely to see issue of Islamic bonds worth $10 billion.

"We are in talks with several prospective issuers who are keen to raise funds through the Sukuk route. The overwhelming success of the Indonesian bond issue stands testimony to the prospects of Sukuk industry in the future," he added.

Khan explained that the very nature of Islamic finance, which is Shariah compliant would not allow trading in derivatives of subprime which has basically triggered the current financial crisis.

Khan was talking on the sidelines of the launch of the partnership between Standard Chartered and Salama-Islamic Arab Insurance Company to offer a wide range of comprehensive Takaful (life) solutions offered by Salama.

Standard Chartered Bank officials said the bank has taken a licence from Central Bank of UAE to sell insurance products. The partnership means that Standard Chartered will now offer Shariah-compliant insurance plans catering to a diverse range of financial needs including children's education, retirement and regular savings plans.

Salama provides all types of cover through its Family Takaful range of products which include unit linked regular savings plans, term and mortgage protection plans, single premium plans and pure protection plan all approved by Salama's independent Shariah board of qualified scholars of international repute.

Commenting on the launch, Khan said, "This is an opportunity for Standard Chartered Bank to broaden the core range of products we provide to our customers and this allows us to participate in the future growth of the country's Takaful market.

Noel Francis D'Mello, General Manager Family Takaful at Salama-Islamic Arab Insurance Company in the UAE, said his company remains committed together with Standard Chartered to meet the consumers' needs and provide them savings solutions.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.