Sukuk Financing. Beyond debt, real ownership.

Saudi Arabia, United Arab Emirates and Qatar are increasingly acting as late-stage private market capital allocators and finance structuring hubs, becoming important nodes of capital concentration by attracting global wealth and operating businesses. 🌍

Beyond traditional Western investment instruments, the regional investors (Islamic funds, banks and private individuals) prefer Sharia compliant investible products, which materially affects how European issuers should think about accessing this liquidity pool.

Traditional debt, with interest payment (riba) is prohibited by Islamic law.

🏗️ Project financing is commonly structured via Sukuk, adding ownership of the project-asset and/or future recurrent proceeds from it, rather than interest. The lender is involved with the project-asset, its completion, long-term success and efficient running operations.

I consider it a very smart product and a financing structure that should be also sought in the West. It aligns financial and real asset performance, and productivity.

This instrument matters for both: European companies and governments targeting the GCC region liquidity pool, and companies accessing their markets as they encourage private financing over traditional public - State lead funding.

I am currently mapping capital flows and structuring dynamics between Europe and the GCC region. If you are a European company evaluating GCC capital access, let’s assess them together 🤝

Capital is moving from West to East, do you follow?