IHS Markit has launched the Emirates NBD Markit iBoxx USD Sukuk Index in collaboration with Emirates NBD, the Dubai-headquartered bank.
The index provides an objective and transparent benchmark for investors in USD sukuk (bonds that conform with Islamic finance norms).
It couples market knowledge from Emirates NBD with IHS Markit’s expertise in the provision of fixed income indices.
“The creation of the Emirates NBD Markit iBoxx USD Sukuk Index is an important and timely expansion of our global iBoxx family of bond indices,” says Aram Flores, managing director and co-head of Indices at IHS Markit. “In partnering with Emirates NBD, we are able to leverage relevant market expertise and offer a dedicated index representing the dollar-denominated sukuk market. With growing interest in sukuk, we are confident that this new, independent benchmark will help a diverse group of investors access this dynamic market.”
Ahmed Al Qassim (pictured), chief executive officer of Emirates NBD Capital, says: “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. 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. Synergising the bank’s long-standing expertise in Islamic capital markets with IHS Markit’s globally trusted expertise in creating and providing indices, the Index will be a catalyst for advancement of the global Islamic finance economy.”
Amid growing demand among asset managers, banks, pension funds and sovereign wealth funds for Sharia-compliant solutions, the index provides the Islamic finance industry with a broad index suitable for benchmarking, research and as the basis for ETFs and tradable products.
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 USD90 billion.
