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AMF: Region needs to support sukuk market - Interview

AMF: Region needs to support sukuk market - Interview
Chairman of the Arab Monetary Fund, Abdulrahman Al Hamidy

By: Mohamed Idris

Riyadh - Mubasher: The director general and chairman of the Arab Monetary Fund (AMF), Abdulrahman Al Hamidy, urged countries all across the region to pay more attention to the sukuk markets, which he believes play a vital role in financing developmental projects.

Al Hamidy also said in an interview with Mubasher on Tuesday that sukuk help new investments in technology, housing, and medical sector.

These projects need long-term investments, and sukuk qualify as a very suitable tool to finance such vital and major investments which help in diversifying the economic activity and increasing productivity, Al Hamidy told Mubasher on the sidelines of the ‘Sukuk Markets, Challenges and Opportunities’ conference in Riyadh, which is organized by the Saudi Capital Market Authority in coordination with the World Bank.

Sukuk also provide a special tool for saving and investment, this way investors can use their savings in developmental projects by finding suitable investment channels that are also less risky, since sukuk are usually covered by assets, he added.

And when asked about the role of the the Arab Monetary Fund plays in developing sukuk programs, Al Hamidy explained that their role is to help in building calibers in the firms that are working in the field, as well as sharing the experience and explaining the challenges facing countries with such finance programs.

Meanwhile, the Saudi finance minister, Mohammed Al-Jadaan, said in a speech to the conference that Saudi Arabia, UAE, and Malaysia dominate 84% of the world’s sukuk which total value amount to $821 billion.

The minister also stressed the growing importance of sukuk on the local and international levels, in the speech that was delivered by his deputy, adding that it is not meeting the market needs especially in the gulf region.

Translated by: Moslem Ali