165
Figure 4.19: Key Factors Underpinning the Growth of Hong Kong’s Sukuk Market
Sources: RAM, ISRA
Still, Hong Kong is relatively a newcomer in the sukuk market. Its interest in developing a
sukuk market only started from 2007. Since then, it has taken the necessary steps to facilitate
sukuk issuance. Figure 4.20 briefly delineates the phases of Islamic finance’s inclusion in Hong
Kong’s financial landscape. Undoubtedly, Hong Kong still has a long way to go in enhancing its
integration in the Islamic finance arena. In the future, it should look at developing a more
facilitative environment in the form of tax incentives to attract foreign issuers to utilise its
sukuk platform, further improve its Shariah governance, achieve greater diversity in its issuer
and investor bases, and examine the possibility of issuing more innovative sukuk, e.g. green
and SRI sukuk.