QCB Governor: Size of Sukuk Issued by Islamic Banks in Qatar Amounts to Approximately QR.8 Billion

Doha , May 01 (QNA) - HE Sheikh Abdullah bin Saoud al Thani, the Governor of Qatar Central Bank (QCB) has announced that the size of sukuk issued by the Islamic banks in Qatar amounted to approximately QR.8 billion at the end of the first quarter of this year, whereas the total volume of investments of the banks operating in Qatar in Islamic sukuk or bonds amounted to QR. 47 billion in the same date. Addressing the international conference on sukuk, which opened in Doha on Wednesday under the auspices and participation of HE Sheikh Abdullah bin Saoud al Thani, the QCB governor said the QCB on behalf of the Government of the State of Qatar issued Islamic bonds by about QR.39 billion in order to enhance the liquidity of the financial centers of the Islamic banks, in line with the requirements of the "Baza 3", and out of the firm belief of the importance of Islamic financial instruments. He stressed the importance of Islamic Sukuk, which continues to grow despite the global financial crisis, which saw the 2009 versions of these instruments amounted to $ 23 billion compared to nearly $ 14 billion in 2008. The size of the global market for instruments increased from around $ 111 billion in the year 2009 to $ 131 billion at the end of last year 2012, HE Sheikh Abdullah bin Saoud al Thani added in his address before the conference . A number of leading legal and financial experts and sharia scholars, as well as top executives, will be taking part in the two-day event, which is entitled "Sukuk Instruments between Standardised Structuring and Secured Implementation". It is being organised by the International Islamic Centre for Reconciliation and Arbitration (IIRCA) under the official sponsorship of the Central Bank of Qatar and with Qatar Islamic Bank acting as a strategic sponsor. Through this conference, the IICRA is aiming to raise the profile of Islamic Banking in general and of sukuk industry in particular along with discussing the latest thinking on issues facing all kinds of sukuk in all their processing stages: issuing, trading, property, termination and insurance. The conference will feature sessions discussing the legal and jurisprudential framework of sukuk, the legal system for trading and issuing sukuk, practical realities, recent draft laws, supervision and control, and the settlement of disputes in the sukuk industry. As well as examining the legal and jurisprudential framework of sukuk, the first day will consider the role of jurisprudential academies in forming a legitimate framework of sukuk instruments and also the role law firms play in structuring this legal framework. This will be followed by a session looking at practical aspects of sukuk Issuance, including getting around legal obstacles between sukuk ownership and sharia requirements. The role of supervisory authorities will come under the spotlight on the second day, together with ratings agencies, and the settlement of disputes in the sukuk industry. Finally the delegates will discuss aspects of specialised arbitration in the Islamic finance industry with a look at how the International Islamic Centre for Reconciliation and Arbitration works in this regard. Commenting on the importance of the conference, the IIRCA General Secretary, Dr.Abdessattar al Khouildi said: "We have decided to organise the conference in Doha because we value the key economic role of Qatar in the region, bearing in mind that Islamic banking in this country plays a leading and vital role in issuing sukuk regionally. The conference aims to highlight the current legal and technical issues surrounding sukuk at all stages of issuance, trading, possession, and insurance; and as such it is a major opportunity to exchange expertise at both the local and international level," he concluded. Many legal and financial experts and Shariah scholars, among others, will attend a two-day international conference on sukuk, which will begin in Doha today. The event will feature sessions on the legal and jurisprudential framework of sukuk, the legal system for trading and issuing sukuk, practical realities, recent draft laws, supervision and control, and the settlement of disputes in the sukuk industry.(QNA)