The Role of Sukuk in Islamic Capital Markets
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Figure 2.2: New Entrants in the Sukuk Market
Source:
Although these issuances still represent a small percentage of the sukuk market, they reflect
the keen interest shown by sovereigns in tapping the ICM to generate funding. Efforts have
been made despite the existing challenges faced by the industry, such as the lack of a
standardized sukuk framework, which makes it difficult to set up legal structures and
legislation in the respective jurisdictions to facilitate sukuk issuance. This may mean a more
cumbersome issuance process, a longer time frame and higher costs compared to
conventional means of raising finance.