This has been reinforced by increased liquidity in the international financial system in search of higher returns and greater diversification of risk. Since the issuance of the first sovereign global Islamic sukuk by the Government of Malaysia in 2002, there has been a series of other issues by the governments of United Arab Emirates, Qatar, Bahrain and Pakistan. An increased number of multilateral agencies have  BIS Review 88/2007  1  also issued sukuks to finance development projects. In addition, both government agencies and the corporate sector have considered the sukuk market as an attractive instrument of financing. Thirdly, there is a great number of global players such as investment banks, Islamic banks and securities firms that are involved in the issuance of sukuk in the international financial markets. A large number of Western banks are also providing Islamic financial services taking advantage of the opportunities and to provide customised products and services to their customers. Fourthly, the established international financial centres have also shown interests to have an active role in promoting the development of the sukuk market including enacting the appropriate legislative provisions. These developments would augur well for the development of the sukuk market. Finally, the regulatory and supervisory paradigm continues to evolve. Indeed, the recent decade had witnessed significant global shifts in the approach to regulation and supervision across many countries. In addition, the harmonisation of standards and practices is also important.

There is also positive response from the local and foreign financial institutions to establish International Islamic Bank, International Takaful Operator, as well as International Currency Business Unit to undertake international currency business in Islamic finance in Malaysia. To date, eight financial institutions have been granted approval to set up such International Currency Business Units in Malaysia. Commercial banks and investment banks licensed under the Banking and Financial Institutions Act 1989 (BAFIA) are allowed to establish International Currency Business Units to carry out Islamic banking business under their existing entities. BIS Review 88/2007  3  To enhance the delivery system to facilitate their establishment, an "executive green lane" has been accorded to expedite applications by expatriates for long-term employment passes with multiple entry visas. In addition, the Foreign Investment Committee rules are also relaxed further to allow for 100 percent foreign equity ownership in these financial institutions. The MIFC portal has also been launched as the primary source of comprehensive online information on the latest initiatives and developments, and enables convenient access to application forms, procedures and guidelines related to entrance and participation in the MIFC. This Portal, is now accessible online at www.mifc.com. The large gathering of practitioners here for these two days to discuss the wide ranging matters that relate to issuers and investors will contribute to enhancing the collective understanding and expanding the boundaries of our knowledge on the opportunities in the sukuk market and the potential that the Malaysian sukuk market provides and its linkages with other international Islamic financial systems.