Diversification of Islamic Financial Instruments
92
3.4.4 ISLAMIC CAPITAL MARKETS IN SUDAN
Islamic capital markets include Sukuk and Shariah-compliant equities markets where both
government and corporates seek capital to finance their activities. This section will present the
Islamic capital markets in Sudan with main focus on the government Sukuk sector which, from
our point of view, has good experience to learn from.
“Africa has been a regular player in the Sukuk market since Sudan and Gambia start meeting
their domestic financing needs through Sukuk financing. Even though Sudan is the pioneer in
this regard accounting for almost 95% of the dollar value of Sukuk issuance so far yet, Gambia
has been a regular issuer of Sukuk” (IIFM, 2016).
“After the implementation of Islamic banking system in Sudan in 1983 the monetary
authorities found themselves restricted only to the direct tools for liquidity management. This
encouraged them to search for more Islamic financial tools instead of the traditional ones.
Hence, with the great effort of the Higher Shariah Supervisory Board and the expert from the
IMF they managed to find the first generation of Sukuk, such as Central Bank Musharakah
Certificates (CMCs) and Government Musharakah Certificates (GMCs)” (IIFM, 2016).
To manage the issuance of these Sukuk the Central Bank of Sudan established Sudan Financial
Services Company in 1998.
Sudan Financial Services Company (SFSC)
SFSC was established in 1998 by the Central Bank of Sudan (CBS) with a percentage ownership
of (99%) and the Ministry of Finance and National Economy (MFNE) with (1%). This service
company was then registered at the registrar of company’s chamber in accordance with the
Companies Act 1925 on 16 May 1998. The company’s vision is to work towards achieving
sustainable economic and social development. Moreover, through establishing this services
company, Islamic financial services will be provided to finance projects that can help create a
stable and prosperous economy that fulfills the needs of the society. Since then, the company
exercises all it business transactions in accordance with Shariah rules and all its financial
products are subject to supervision by the Shariah Supervisory Board. According to the
company’s official website, the main functions of the company are:
 Provision of financial services related to management; dealing in the shares and the
allocation owned by government, corporations and institutions; issuing Sukuk in
accordance with Shariah rules.
 The company may provide financial services which is related to the management and
the dealings in issuing of any Sukuk; representing financial assets owned by any other
holders as requested by them.
 Coordination with specialized departments in the MFNE, CBS, Khartoum Stock Exchange
(KSE) and any other regional and international markets in order to promote Islamic
financial instruments and their issue.