Hawkamah Institute for Corporate Governance will issue a template for sukuk ijarah, to cut the cost of issuing the debt and strengthen the Islamic finance business, according to Nasser Saidi, the executive director.
The Dubai-based institute, which is working with the Bahrain-based International Islamic Financial Market, or IIFM, expects to release the document this year, Saidi told reporters in Dubai today. Hawkamah plans more Islamic bond templates after that, he said. Most sukuk are based on ijarah, a sale and lease agreement, as in real estate.
The IIFM, an agency seeking to set standards for Islamic securities, told Bloomberg in November that it plans to issue global guidelines to facilitate the sale of sukuk in 12 to 18 months. It and Hawkamah have joined forces and are releasing the sukuk ijarah template together, Saidi said.
He was speaking at a press conference on the release of a report setting out 55 recommendations to strengthen corporate governance in Islamic financial institutions.