The global Islamic finance industry’s growth potential remains but limited public awareness and lack of confidence in the sharia-compliance of Islamic financial products are part of the key challenges the industry faces, said Dr Khairatun Hisan MSi.
She was speaking at FEBI-UIN Antasari’s Studium Generale, held virtually, Tuesday (16/02/2021), entitled “Understanding Sukuk: a Theoretical Approach”. The activity was attended by around 500 participants from KNEKS, OJK, lecturers, and students.
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) defines sukuk as certificates of equal value representing undivided shares in ownership of tangible assets, usufructs and services or (in the ownership of) the assets of particular projects or special investment activity.
Hisan covered topics from the unprecedented speed in developing Sukuk to the share of Sukuk. The sukuk market is one of the fastest growing segments in the Islamic financial industry with about 24.2% of the total global Islamic financial assets and new issuances amounting to $93 billionin 2018 according to the Islamic Financial Services Board (IFSB).
“The share of sukuk and Islamic loans as part of those sovereigns’ total funding mix reached around 17% at end-2020. Therefore, the industry can play a critical role in building a stable and prosperous economy when it is managed with accountability,” she said.