In the complex and ever-changing landscape of the current Islamic capital markets, there is a need for a gathering of experts to understand and formulate innovative approaches to discover the potential and future of the most important Islamic capital market instrument: sukuk. Sukuk, also known as an Islamic bond, is the most important and widely used Islamic financial instrument around the world. In recent years, sukuk has been used as an alternative to conventional bonds because of its flexibility and security it provides to both investors and issuers.
The conference will focus on the broader understanding of the instrument and will highlight certain challenges faced in the current geo political and financial environment. The programme will start with a general explanation of sukuk, in today’s context, showing new perspective and innovation in sukuk investment and its potential.
Throughout six sessions, Shariah, legal and finance experts will not only share their experience and their thoughts on its development in working with sukuk but also the lessons learned over the years and how to cope with certain challenges while designing the perfect sukuk.
At the 2nd Kuala Lumpur International Sukuk Conference, local and foreign experts will gather for insightful discussions on core topics, which are now more relevant with the inclusion of fintech and block chain technology in the financial industry as well as discovery of the newly potential underlying asset for Sukuk transaction. These forums, unlike discussion platforms will not only highlight past experiences but will also lay the groundwork for similar conference in the future.
Join us at this event to engage and network with our experts. Be a part of the future by understanding the sukuk’s past and how to move forward with sukuk in the ever-changing global capital markets and financial industry.
See you there…
At a Glance
DAY 1 - THURSDAY 20th September 2018
8.30am Registration and welcoming Coffee
9.00am Keynote address by Guest-of-Honour
Sukuk at Heart brings forth a new perspective and innovation in the sukuk investment. Responsible and sustainable investment coupled together with social welfare responsibilities represent the foundation of Sukuk at Heart. The Sukuk at Heart structures are developed with the aim of establishing strong and continuous financial back up for Corporate Social Responsibility (CSR) activities. They also act as a reference for investors who are considering Environment, Social and Governance (ESG) aspects in their investment decisions. With advent of sustainability initiatives internationally and locally, there is a need for more investment instruments to help foster good corporate citizenship and promote sustainable development. From the Islamic finance perspective, there are growing efforts to develop new forms of instruments the Islamic Social Financing (ISF) to address the gap in social development and public welfare needs. The establishment of various financial instruments that are used for investing in ISF portfolios has resulted in growing interest from corporations across industries and jurisdictions to partake in more social financing efforts. Thus, not only has ISF growth led to continuous product innovation for Islamic finance, such as Sukuk at Heart, but ISF has also motivates companies to apply ISF initiatives in their business activities.
1045am Coffee break
The success of Malaysia’s securities regulatory regime validates its disclosure-based model and the sukuk industry’s capacity to self-police, combined with proper oversight. Malaysia’s disclosure-based model has proven itself to be effective in addressing the core objectives of securities regulation, including protecting investors, maintaining fair and orderly markets, and facilitating capital formation. Credit ratings have always been and remain an important component of Malaysia’s disclosure-based regime. Investor confidence in the integrity of a rating agency’s form the basis of an individual rating agency’s reputation for objectivity and accuracy.
12.30pm Networking lunch
The financial industry is adopting blockchain technology at a faster pace than other industries. According to IBM, 15 percent of top global banks intend to roll out full-scale, commercial blockchain products by next year, and 65 percent of these banks are expected to have blockchain projects in three years’ time. Blockchain is a technology that tracks and records data across a digital ledger network made up of participating parties. These parties will independently verify and store each instance of transaction or contract as it originates and changes. There are several major opportunities in the mainstream Islamic finance space where blockchain technology can be adopted. Applying this technology in sukuk operations may resolve many issues and promote more sukuk participation from issuers and investors. The discussion will highlight the opportunities, new strategic approaches and challenges as well as provide a reality check for whether we are able to see pure blockchain-related Islamic finance.
3.30pm Coffee break
In 2009, the entire Islamic debt market was shaken by a near default on a sukuk amounting to USD 3.5billion by Nakheel, a government-owned property developer in Dubai. This was eventually settled through an intervention from the government of Abu Dhabi. This was reflected by the uncertainty on how defaults would be handled as the Islamic financial market was still young, and default cases had no precedent. In 2017, Dana Gas, in the United Arab Emirates, missed a payment on a USD 920 million sukuk. This case is still being closely followed by the international Islamic finance community for how the restructuring of the sukuk will be handled consensually among the parties involved. This case could provide a model for future defaulters in the Islamic finance sphere. In general, sukuk defaults in Malaysia have not been controversial as Malaysia has developed a legal framework regarding Islamic finance that allows banks/investors to handle defaults in a manner similar to conventional bonds.
DAY 2 - FRIDAY 21st September 2018
The debate between the asset backed and asset based for Sukuk is still on going. While the majority of sukuk is not asset-backed, more efforts have been done to search for a new asset type that can be applied in sukuk structure. This session highlights some key discussions pertaining to what type of new assets that can be universally accepted from all angles such as Shariah, legal, finance and taxation perspective.
10.30am - 11.00am: Coffee Break
The sukuk market saw the issuance of instruments that covered the entire capital structure, from senior paper with secured features to deeply subordinated instruments in both the financial and non-financial corporate spaces since its inception. As the world is embracing the next industrial revolution (Industry 4.0), the global sukuk market is expected to continuously grow as there are large numbers of new issuers looking at sukuk as the preferred direct investment. This session brings forth the discussion on what would be the next standard of contract involving the new type of sukuk, how the impact of sukuk performance can be measured via artificial intelligence, what would be the new permutation of Shariah Structure and Fatwa, whether “tokenisation” structure can be applied in sukuk, how a robotic based early warning software (default trigger) can be applied in managing risk for sukuk.
12.30 Closing Remark & End
|For more information/RSVP, please contact:
• Early Bird: RM1,199.00/pax (by 21 August 2018)