Sukuk Forum Dubai sponsored by Sanad Sukuk Fund

The Middle East Business Forum will be gathering in Dubai on 25 April 2007 at the Grand Hyatt to focus its members’ attention towards the phenomenal growth of the Sukuk industry across international markets.

The Gold Sponsor, Sanad Sukuk Fund, is the world’s first GCC-oriented, diversified Sukuk fund. Sukuk—which are also known as “Islamic bonds”—have, until now, been difficult to purchase for the vast majority of Muslims leaving them unable to enjoy the benefits of bond-like investments. Previously Muslims were able to buy only deposit equivalents, stocks, real estate and private equity assets that met Sharia standards. A major gap has existed in the investment universe of Muslim savings, a gap that finally was closed with the launch of the Sanad Sukuk Fund.

Mark Mortimore, Executive Director of the Sanad Sukuk Fund and a member of the fund’s Board of Directors, commented, “We are proud to partner with the largest Sukuk event this year, and will surely benefit. As the event is open to financial professionals, it is assured to meet new potential distribution partners, treasuries and sukuk trading desks with whom we can take our fund to a new level.”

The Sukuk industry has experienced a phenomenal growth over the last 5 years. From practically being non-existent a decade ago the industry is now worth over $100 billion. There is over $800 billion of reserves that needs to be invested in accordance with Shariah principles and the Sukuk market has been reaping the benefits of this liquidity. The variety and scale of the projects that can be financed utilising this model has ensured its continued buoyancy and there is now over $22 billion worth of new issues planned for 2007.

Sukuk - Exploring the Phenomena will be the leading international event dedicated to exploring this exciting market and will gather the experts and practitioners that have pioneered and driven this industry so far.

Note to Editors:

Islamic finance is considered a growth industry. Although statistics are not well proven, most experts estimate a size of USD 500 billion plus x as a reasonable figure. The main financial markets dealing in these matters are London, Bahrain, Dubai, Kuala Lumpur and Singapore. Geneva remains a distinguished place where many Middle East based investors let companies manage their assets – conventionally and increasingly Islamically. Experts’ estimations are around USD 200 bn alone in Assets under Management from Mideast clients and an increasing percentage of these funds are asked to be managed Islamically. The main requirements are upholding certain industry exclusions, avoidance of bank interest, and legal uncertainties in contracts. The wider objectives of Islam in investments are similar to the sustainability concept and includes stewardship for mankind and environment, which we received in trust by God.

Sukuk , the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is forecast to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed now to be preparing new Sukuk issues.

ABOUT SANAD INVESTMENT COMPANY LTD.

Sanad Investment Company Ltd.—or the Sanad Sukuk Fund—is the first GCC-oriented diversified Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant market gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully Sharia-compliant. The Sanad Sukuk Fund will invest not less than 75% in Sukuk and a maximum of 25 % in Sharia-compliant credit syndications, with a focus on the GCC countries. Expanding the Sukuk market by creating a Sukuk fund will lead directly to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands along with the fund manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds. More information on the Sanad Sukuk fund can be found at the fund’s website, www.sanadfund.com.

THE MIDDLE EAST BUSINESS FORUM

The Middle East Business Forum is a high profile gathering of individuals and institutions with a common goal to conduct business amongst themselves and promoting their good and services both to and from the Middle East region.
The Forum partners have an unequalled expertise in the Islamic finance and related events sector beyond most large conference organisers and such are able to deliver events of superior value to delegates. Our expertise lie in areas including Islamic Project Finance, Sukuk, Takaful, Islamic Real Estate Finance, Islamic Funds and many more.

The next international event organised by the Forum will focus on the highly successful Islamic instrument being Sukuk, to be held April 25th 2007 in Dubai. Stay up-to-date with industry events and news on:

www.middleeastbusinessforum.com

Michael Gassner Consultancy Ltd.
68 Lombard Street
London, EC3V 9LJ, United Kingdom
Phone: 44 207 868 1717
Fax: 44 207 868 1817
http://www.islamicfinance.de

This release was published on openPR.