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Sukuk are exposed to
different type of risks. One of the most important risks is the market risk
which is composed to interest rate risk, foreign exchange risk, equity
pricing risk and commodity risk. Other types of risks that should be
considered are liquidity risk, business risk and Shariah compliance risk.
Recent Trends in Sukuk
Markets
The Sukuk market through the past five years has seen a rapid surge in
issuance across Asia and the Middle East. The Sukuk certificates for a
medium term investment reached in 2004 a market volume of around $7 billion.
The amount grew to reach around $20 billion at the mid of 2006. From future
prospective, the number and the variety structured Sukuk products are
expected to continue to expand in the future as most of companies and
financial institutions seek to tap into the significant liquidity of Islamic
investors looking for Shariah-compliant investments.
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