189
Stage of sukuk
market
development
Issues and challenges Key recommendations Rationale
Market and infrastructure development  To create more
efficient capital-
market
intermediation
and encourage the
issuance of more
sukuk as a credible
source of funding.
 Lack of awareness on the
importance and benefits
of sukuk as an effective
financing tool to fund
infrastructure projects.
 Government, regulatory
authorities and market
players need to make
concerted efforts to
promote sukuk as an
effective financing tool to
fund the infrastructure
gaps in underdeveloped
economies.
 Lack of awareness on ICM
instruments among non-
Muslim religious groups.
 Promote understanding
among the non-Muslim
population on sukuk and
other ICM instruments, by
having more engagements
with influential religious
bodies.
Diversified market players on the supply and demand sides To diversify the
investor base.
 Issues of financial
inclusion and a relatively
small ratio in terms of the
working population
relative to the total
population of the country.
 To provide incentives to
low-income groups and
the mass market to
encourage them to take
up takaful or insurance
services, thereby spurring
the establishment of more
takaful/insurance
companies that subscribe
for long-term sukuk.
Sources: RAM, ISRA