(MENAFN - Arab Times) KFH Investment that is a Kuwait Finance House (KFH) subsidiary, Board Member Emad Al-Menaie stated that Sukuk play a pivotal role in financing infrastructure projects in the gulf region, and are considered to be the Islamic equivalent of bonds. He added that Sukuk are highly demanded after they have proven to be effective by governments, companies, and authorities in various countries. He expected the demand for Sukuk in the GCC to increase during the coming period.
Al-Menaie explained during a meeting with a group of students and high studies researchers from Portland University, that improving the business environment and the launching of the development plan projects, will allow those projects to take advantage of those projects. He asserted that the Sukuk market has been growing year after year, and revealed that Asia and Europe possess large shares of total Sukuk issuance worldwide, in addition to the fact that the GCC depends more on Sukuk as a financing tool.
Moreover, Al-Menaie described to the visiting delegation KFH's successful experience, and the principles of Islamic banking in various fields of business. He stressed that Islamic banking has become an important sector in the global economy in light of the high acceptance in dealing with Islamic services and products. He went on to say that Islamic banking plays a prominent role in the development of markets; especially that Islamic banking tools include Murabaha, Ijara, Sukuk, Istisnaa, and others. He added that Muslims and non-Muslims use those tools in regional and global markets. He said that Islamic financial institutions should shoulder their role in explaining the concepts of those tools for those working in the banking field.