Sukuk Issuers Stand to Benefit from Increased Fixed Income Investor Engagement If They Know How to Respond

ESG engagement has become a key element of responsible investment for equity investors, but has developed much slower among fixed income investorsEfforts to boost engagement by fixed income investors could affect where inflows of investors direct their funding in Islamic capital marketsSukuk issuers receptivity to fixed income investor engagement could help differentiate Sukuk from sector and regional peer issuers who only raise funding with conventional bonds

Sukuk markets have grown in their diversity to include green, social, transition, sustainability- and Sustainable Development Goals- (SDGs) linked Sukuk. Within the market, sustainability Sukuk have grown faster than green Sukuk in recent years which is in part due to limited availability of green assets in Islamic market...