Higher Ratios of Islamic Tranches Predicted in Project Finance Market

Recognising development and innovation in the Islamic Finance industry, the upcoming 2nd Annual World Islamic Infrastructure Finance Conference (WIIFC) features the International Industry Award, presented in association with KPMG to promote excellence in the global Islamic project finance environment. The WIIFC is scheduled to be held on the 4th and 5th of November 2007 at the Four Seasons Hotel in Doha, Qatar with the award to be presented at the WIIFC Gala Dinner, hosted by Bahrain’s Borouj Capital on the opening day.

The market for Islamic finance as a key source of

financing large-scale projects is now coming of age. Complex deals are increasingly featuring an Islamic finance component, which is further spurring innovation as institutions develop the next generation of Islamic finance solutions to cope with the huge boom in real estate, LNG, energy and infrastructure developments. With Islamic banks now having gained major experience in increasingly complex transactions and conventional institutions further sharpening their own capabilities, the market is now set to expand to see even larger transaction sizes in the year ahead.

2006 was a watershed year for Islamic project finance, with some 12.65% of regional project finance being Islamically-structured - almost double the 6.58% of 2005. Furthermore, some large deals included the ratio of the Islamic component at over 40% of the total amount raised. Industry experts are now predicting that the future potential of Sukuk as a mode of finance and Islamic private equity funds showing an appetite for infrastructure investments will provide the impetus for the next wave of growth – and also attract non-bank investors. In addition, more and more corporate end-users are looking to the Islamic financial markets as a source of capital, and these forces will create the market conditions for more record-breaking years in 2007 and beyond.

WIIFC 2007 will also feature a session focusing on the main theme of the conference, Innovation in Islamic Project Finance. This session will address the increasing sophistication of Islamically-structured transactions, what will the next generation of Islamic financial solutions look like and assess to what extent Islamic financial institutions are ready for the challenges of increasingly complex transactions.

MEGA is the market leading business information firm focused on achieving business results for the Islamic banking & finance industry since 1993. The portfolio of MEGA brands represents the landmark industry conferences and our clients are the leading players in the international financial markets. For further information, please contact: Annie Chinoy Marketing & Media Manager Middle East Global dvisors (MEGA) Tel: +9714 3431200 Email: annie@megaevents.net