Regulatory Alerts2017-04-26
Sukuk Bonds: An Alternative Source of Long Term Capital for Uganda
The Capital Markets Authority of Uganda is launching a Capital Markets Development Master Plan that explicitly recommends facilitating the issuance of public and corporate sukuk bonds to mobilize long-term capital for national development. Sukuk bonds offer Sharia-compliant financing structures, such as Istisana for infrastructure, providing issuers with access to a global pool of over $60 billion in Islamic funds while allowing investors to diversify risk through asset-backed returns. To realize this potential, the document urges the Ugandan government to lead by issuing a sovereign sukuk, develop skilled practitioners, and coordinate with regulators to ensure Sharia compliance and market readiness.
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