Ahmed Al Qassim, Emirates NBD
The index aims to provide a high-quality, objective and transparent benchmark for investors in USD sukuk (bonds that conform with Islamic finance norms) and couples market knowledge from Emirates NBD with IHS Markit's experience in the provision of fixed income indices.
Ahmed Al Qassim, Chief Executive Officer of Emirates NBD Capital said: "Demand for sovereign and corporate sukuk has increased significantly over the last few years attracting significant international capital. With the launch of the Emirates NBD Markit iBoxx USD Sukuk Index, we aim to provide investors with world-class analysis tools and standardised performance measurement to enable them to make investment choices.
He continued: "The Index will also enable the creation of products that will pave the way for greater access to the sukuk market for retail investors who have historically been underserved by opportunities to invest in this asset class."
The Emirates NBD Markit iBoxx USD Sukuk Index is a market-cap weighted index designed to reflect the performance of the overall USD sukuk market. Index constituents include investment grade, high-yield and non-rated securities from sovereign, sub-sovereign and corporate issuers. At launch, the index references 98 sukuk bonds from 61 issuers with a current market value of more than $90 billion.