Deloitte and IRTI workshop: Restructuring Sukuk the Islamic way

22 April, 2014 – The Deloitte Islamic Finance Knowledge Center (IFKC) in the Middle East and the Islamic Research & Training Institute (IRTI), a member of the Islamic Development Bank (IDB) Group held on March 27, 2014 the “Restructuring Sukuk- the Islamic Way” workshop in Dubai, the first of a series of executive workshops targeting industry practitioners, investors and issuers.

The event, which gathered representatives from the Central Bank of United Arab Emirates, Dubai Financial Services Authority (DFSA), and Islamic Development Bank Group (IDB), tackled the Sukuk market trends and the key Sharia’ and regulatory considerations for restructuring activities. The participants discussed actual restructuring case studies with analysis of risks associated with transactions and lessons learned. The event also provided practitioners the opportunity to hear different perspectives in discussions facilitated by leaders from Deloitte, DFSA, IDB Group, Islamic International Rating Agency, FWU Global Takaful, and Clifford Chance.

“The workshop marks the importance of a three-way dialogue between regulators, practitioners and law and consulting firms, to address and discuss pressing issues in Islamic finance to ensure knowledge-sharing and keep vested practitioners informed,” said Joe El Fadl, financial services industry leader at Deloitte Middle East.

“This workshop has addressed a very topical subject in the light of the rapid growth of the Sukuk market and provided participants with critical analysis of issues such as Sharia’, financial, investment and legal considerations that could impact Sukuk restructuring” said Professor Mohammad Azmi Omar, Director General of the IRTI.

”We are pleased with the technical discussion that was addressed – with a case studies analysis of international and regional defaulted Sukuk – the key determinants of Sharia-compliant restructuring” said Dr. Hatim El Tahir, Director of the Deloitte Islamic Finance Knowledge Center. 

“It was an excellent workshop involving issuers, investors and market practitioners focused on the challenges and opportunities for the Sukuk market, especially for corporates in the MENA region,” added Sohail Jaffer, Deputy CEO, FWU, Global Takaful Solutions.

“The workshop provided once again an indispensable opportunity for industry stakeholders to discuss the challenges of enforcing contractual repayment obligations in a default scenario and the competing interests of the classes of investors whose rights are governed by the detailed provisions of trust deeds, which have typically borrowed their legal technology from the Eurobond market," said, Stuart Ure, Partner, Clifford Chance LLP.

To learn more about the Deloitte Islamic Finance Knowledge Center (IFKC), go to: http://www2.deloitte.com/ifkc 

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Deloitte is among the region’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with more than 3,000 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has received numerous awards in the last few years which include Best Employer in the Middle East, best consulting firm, and the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW).