Islamic Finance

Islamic Finance


London Stock Exchange is a key global venue for the issuance of sukuk. To date over US$50 billion has been raised through 66 issues of these alternative finance investment bonds on London Stock Exchange. The Exchange offers the choice of two routes to market – the Main Market or the Professional Securities Market. The Main Market is the Exchange’s flagship international market for established companies and offers access to deep pools of capital and the benefit of a high profile launch to market. The Professional Securities Market, which is Exchange-regulated, offers the benefits of listing with more flexible regulatory requirements.  It allows the admission of debt securities and sukuk without the requirement for a full prospectus as only listing particulars are required and the disclosure requirements are tailored to wholesale needs as they can be governed by domestic GAAP rather than IFRS. In addition to the prestige of admitting securities to trading on a truly international and globally respected exchange, allowing companies to raise their profile with investors worldwide and access a deep pool of capital, London offers the benefit of competitive admission and listing costs as London is the only major listing venue which does not charge an annual fee to issuers.

Exchange Traded Funds on Islamic Indexes

London Stock Exchange also has a vibrant market in Exchange Traded Funds (ETFs) including three Shariah-compliant ETFs, available through 6 multi-currency lines which are based on Islamic indexes. ETFs are open-ended index tracking funds listed and traded on exchanges like shares. They allow investors to gain exposure to a diverse range of assets and offer simple and efficient access to developed and emerging markets, broad and sector indexes. By trading a single share, users can effectively gain access to an entire index without the burden of investing in each of the constituent stocks making ETFs a highly efficient and cost effective investment.

FTSE Shariah Global Indexes

The FTSE Shariah Global Equity Index Series has been designed to be used as the basis for Shariah-compliant investment products that meet the requirements of Islamic investors globally. The FTSE Shariah Global Equity Index Series covers both developed and emerging markets, to create a comprehensive Shariah indexing solution. By partnering with Yasaar Ltd, an impartial consultancy and leading authority on Shariah, FTSE remains neutral and fully up to date with latest practices.

Russell Islamic Global Indexes

The Russell-IdealRatings Islamic Index offers investors an accurate and complete global-equity market index that reflects established Shariah investment guidelines. Based on the broad and deep Russell Global Index universe of over 10,000 securities, with the Shariah screening oversight of partner IdealRatings. To ensure full compliance with Shariah principles, the index is approved and monitored by an independent board of some of the most highly distinguished and respected Islamic scholars in the field.