Islamic finance with a growth rate of between 10 to 12% annually in the past decade is gaining prominence at many fronts, including its ability to meet the unique demands of the modern economy. The sukuk market in particular, has produced a dynamic stream of cutting edge products with an appeal that transcends beyond borders and beliefs. It has a wide geographical spread, with global sukuk outstanding domiciled in over 20 countries, and an investor base that spans from Europe to the Middle East and Asia, thus allowing greater diversification of exposures and risks. Malaysia, with a consistent global sukuk market share of more than 50%, over the last 10 years, has sustained its position as the market leader. In the last few years, we have witnessed increasing sovereign sukuk issuances by non-Muslim jurisdictions to meet the varying motivations of its issuers. In 2015, at least 13 jurisdictions have tapped the global sovereign sukuk market. Issuances by the United Kingdom and Hong Kong, are testimonies that the sukuk has come of age. As for Malaysia, its market share of sovereign sukuk stands at 40% and the recent issuance of a Sukuk Wakalah by the Government, with 30-year tenure is currently the longest tenured sovereign sukuk globally. The horizons and usability of sukuk have also expanded into the sphere of Socially Responsible Investment (SRI); following the issuance of the first SRI Sukuk in 2015 by a Malaysian GLC. This is an example of innovative impact investing that generates positive social outcomes.
The first batch of CIFP graduates received their scrolls in February 2009 and all 32 have gained employment or have continued their studies further. This year, INCEIF will see the first batch of Masters in Islamic Finance graduate and next year will see the first batch of students to graduate from the PhD programme. This is indeed a significant milestone for INCEIF that is achieved in such a short period of time. As the Chancellor of INCEIF, it is my hope that the setting up of the INCEIF Chair of Islamic Finance will contribute to the development of expertise of the academic faculty and students at INCEIF in addition to expanding further understanding of Islamic Finance by the financial community. Please join me in welcoming Dr Abbas Mirakhor to deliver his lecture. 2  BIS Review 9/2010