185
Key
components
Requirements Functions
Diversified
market
players on
supply and
demand sides
1. Diversified
issuers and
frequent
issuances
 To provide a sufficient supply, which includes both LCY and FCY issuances.
 To encourage issuance by different entities:
Government
Government-linked entities (or state-owned entities/government-
related entities)
Corporates
2. Diversified
investor
base
 To create demand and provide liquidity to the market from:
Banking institutions
Intermediation of NBFIs such as pension funds, takaful and
insurance companies, fund management companies, sovereign
wealth funds.
Inclusion of retail investors.
5.2 GENERAL RECOMMENDATIONS IN DEVELOPING A VIBRANT SUKUK
MARKET
Based on the comprehensive framework above, Table 5.2 outlines general recommendations
that OIC countries can adapt to develop their sukuk markets. These recommendations are
proposed according to the developmental stages of the respective sukuk markets, which can be
divided into 3 phases:
1. Matured
2. Developing, which is sub-divided into 3 stages:
 Advanced
 Intermediate
 Beginner
3. Infancy
The policy recommendations take into consideration the key issues and challenges faced by
each market and its inherent macroeconomic conditions. Depending on the state of progress of
each yardstick discussed earlier, practical solutions have been proposed to advance a domestic
sukuk market to its next phase of development. The yardsticks are applicable to all the
developmental phases and are vital towards elevating a nascent sukuk market to developing
status, likewise from the developing to the matured stage.