The speakers at a discussion said Bangladesh is a highly potential market for shariah-based investment products.
They, however, identified some major challenges which include lacks of regulation, reference rate, secondary market and overall awareness to make sharia-based products a success.
NDB Capital Limited organised the discussion styled as “Potentials of Shariah-compliant Investment Instruments in Bangladesh” recently in Dhaka, said a press release.
“Despite the challenge, we need to develop the Sukuk market in the country,” said Qazi G R Arif, managing director and CEO of NDB Capital.
“Sukuk” is an Islamic term for bond. According to Qazi Arif, successful Sukuk structure is possible within the existing legal and regulatory framework.
The main purpose of the event was to assess the viability of introducing different Shariah-compliant investment products or “Sukuks” on the local market.
The speakers discussed about benefits, challenges and structure of Shariah-compliant investment bonds or instruments in the country.
High officials from Islami Bank Bangladesh, Prime Bank, Fareast Islami Life Insurance, Padma Islami Life, Sonali Bank, Standard Bank, Pubali Bank, A S Associates, Takaful Islami Insurance, Shahjalal Islami Bank, Bank Asia, AB Bank, Prime Islami Life Insurance and NDB Capital Limited also attended the function.
According to a statement, Sukuk securities are structured to comply with Islamic laws and its investment principles, which disapproves of any charge or interest.
Sukuk is currently used in Egypt, Malaysia, Kazakhstan, Qatar and Turkey, it said.