Tapping surplus liquidity
Tapping surplus liquidityIslamic financial institutions are flush with cash, and banks are increasingly looking at sharia-compliant investments to park their money. It's sparked a flood of Islamic asset-backed securities issuance this year, with both Muslim and so-called conventional issuers keen to tap the market. By Alice Hales
Strange as it may sound, high oil prices could turn out to be the biggest stimulant the Islamic securitisation market has ever had. With oil hovering around $60 a barrel, there is a huge amount of liquidity in the Middle East, North Africa and parts of Asia. According to the General Council for Islamic Banks and Financial Institutions, pure Islamic-owned financial institutions have around $260 billion of assets under management. That doesn't include the estimated $200 billion–300
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