Islamic Finance: Emirates NBD Lead the Way

Islamic Finance: Emirates NBD Lead the Way

A Markit iBoxx USD Sukuk Index was launched Emirates NBD Wednesday to provide a high-quality, objective and transparent benchmark for investors in USD Sukuk.

Launched in collaboration with IHS Markit, a world leader in critical information, analytics and solutions, the index combines extensive market knowledge from Emirates NBD with IHS Markit’s deep expertise in the provision of fixed income indices.

“The creation of the Emirates NBD Markit iBoxx USD Sukuk Index is an important and timely expansion of our global iBoxx family of bond indices,” said Aram Flores, managing director and co-head of Indices at IHS Markit.

“In partnering with Emirates NBD, we are able to leverage relevant market expertise and offer a dedicated index representing the dollar-denominated sukuk market. With growing interest in sukuk, we are confident that this new, independent benchmark will help a diverse group of investors access this dynamic market.”

Ahmed Al Qassim, Chief Executive Officer of Emirates NBD Capital said, “Demand for sovereign and corporate sukuk has increased significantly over the last few years attracting significant international capital. With the launch of the Emirates NBD Markit iBoxx USD Sukuk Index, we aim to provide investors with world-class analysis tools and standardised performance measurement to enable them to make investment choices. The Index will also enable the creation of products that will pave the way for greater access to the sukuk market for retail investors who have historically been underserved by opportunities to invest in this asset class. Synergising the bank’s long-standing expertise in Islamic capital markets with IHS Markit’s globally trusted expertise in creating and providing indices, the Index will be a catalyst for advancement of the global Islamic finance economy.”

Amid growing demand among asset managers, banks, pension funds and sovereign wealth funds for Sharia-compliant solutions, the index provides the Islamic finance industry with a broad index suitable for benchmarking, research and as the basis for ETFs and tradable products.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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