Malaysia, which is perhaps the largest sukuk investment market, is contemplating to change the legal system so that it can be considered as an alternative investment market to the UK. In order to resolve Islamic financial disputes, you can resort to the Malaysian Sukuk market. The aim is to position Malaysian laws as the Islamic law for choice for financial transactions globally. Thus if the question ‘How do I get rid of debt’ is wondering you, you could easily try your luck in investing in the sukuk bonds.
As investors are becoming more and more cautious regarding investing in the Islamic bonds, they have increased their skepticism regarding Islamic bonds or sukuk. Since the last 2 years, investment in the Sukuk bonds has become increasingly popular in the UK and US market. In fact, according to a statistics provided by an Islamic country, the finance industry is worth $1 trillion of asset and foretells that it will grow by 10-15% per annum. Previously it was mainly focused in the Middle East and Asia but now it is fast expanding to the UK and the US.
Proposed reasons for the expansion of the Islamic finance market
The most talked-about reason for this growth in the Sukuk bond market among the US and the UK is the economic turmoil that prevailed in the last 2 years. There is also a careful shift in the global investor sentiment. The investors globally are no more concentrating on wealth creation. Rather they’re focusing more on preservation of wealth. This change in their financial behavior is witnessed in the way in which investors are managing risk by investing in various financial products. They are cautiously allocating their investments in different classes.
For the investors in the Middle –East, there is always a mounting sense of frustration because they cannot invest in any other financial instrument than in a sukuk. As a consequence of this, most investors are looking for bond investment in the UK and the US.
Growth of Islamic finance in the UK
In accordance with this change in the Islamic finance market, UK is gradually developing an Islamic financial market. London, in particular has made its own position as a leading market for sukuk investment. In fact there are 4 banks in total in the UK that have dedicatedly started concentrating on Islamic investment finance market. A number of conventional and traditional banks in the UK have opened “Islamic windows” in order to mark their own particular changes.
Changing attitudes of Islamic investors
There is a reported change in the financial behavior of the Islamic investors who are watchfully allocating their investments between core and satellite investments. They are also showing an increasing tendency of switching between enterprising and defensive core investments within a short term notice. In spite of the changing attitudes of such investors, they are still looking for investments that have more secured returns.
With the economic turmoil taking an upper hand on the UK and the US economy, the Sukuk or the Islamic bond market is reportedly improving. The number of Sukuk ssuances by well-rated international company vouches this fact of the Sukuk market expansion. Thus, if you too are thinking ‘How do I get rid of debt’, try investing in the Islamic finance market to gain huge returns.