THE GULF BOND AND SUKUK ASSOCIATION
”Helping Build the GCC Region”
Michael Grifferty
October 1, 2009
DIFC and the World
Bank’s MIGA
What are Associations?
•
The association community comprises
trade and professional associations,
chambers of commerce, economic
development corporations, and other
business membership organizations
•
Associations are emerging in the Gulf
despite a challenging legal environment
Role of Associations
•
•
•
•
•
•
•
Advocates for industries and professions
Create codes of ethics for entire professions
Set product safety and other standards
Source of professional development
Cultivate leaders
Major employers
Address economic/societal challenges
Increasing Recognition of Bond and Sukuk Market
• Diversified funding sources
• Financial sector stability
• Basis for financial products
• Corporate governance
• Finance infrastructure
• Option for retail investors
With or without Monetary Union!
GBSA’s Raison d’être
It is widely recognized that the existence of a
deep and liquid bond market - both
conventional and Shariah compliant - is essential
to the financial stability, development and
economic diversification of the UAE and the
regional economy.
Future Requires Consensus & Commitment
• Establish government yield curve
• Regulation balancing transparency
and efficiency
• Encourage Issuers
• Appropriate market structure
• Market-making and Repo
• Promote credit culture
• Explore credit enhancement
• Unlock natural sources of demand
Trade Association
What is GBSA?
The Gulf Bond and Sukuk Association is
being established in the GCC zone as a
regional trade association dedicated to
pursuing best practices in the
development and expansion of bond and
sukuk markets in the region.
GBSA’s Mission Statement
GBSA will be the premier trade association
representing the Gulf bond and sukuk market, one of
the world’s mostly rapidly expanding markets for
these financial instruments. GBSA seeks to harness
the commitment of its members to promote a wide
and deep market on the basis of international best
practices as adapted to the region, governed by the
highest ethical and professional standards and a
shared sense of purpose.
GBSA Activities
•
•
•
•
•
•
•
•
•
Act as focal point for the bond community in the Gulf Region.
Contribute to developing market legislation and regulation.
Provide input to region’s regulators on market trends and developments.
Advise government agencies in their roles as issuers.
Develop market practice, trading conventions and standard documentation.
Conduct activities leading to employment of GCC citizens in the industry.
Raise awareness of public about responsible investing.
Work with international bond market efforts and establish global links.
Promote high professional standards through continuing education.
www.gulfbondsukuk.com