GLOBAL: The IsDB Institute (IsDBI) and the Asian Development Bank Institute (ADBI) have jointly unveiled a study proposing the Sukuk Enhancement Fund (SEF) – a mechanism designed to improve the risk profile of Sukuk and expand access to capital markets, particularly for SMEs.
The report, titled ‘Sukuk Enhancement Fund: A Sustainable, Cost-Efficient Scheme for Enhancing the Risk Profile of Sukuk’, was launched at the 20th IsDB Global Forum on Islamic Finance held on the 17th June 2026 in Azerbaijan, in conjunction with the IsDB Group’s 2026 Annual Meetings.
The proposed SEF introduces a mutualized risk-sharing mechanism through which participating Sukuk issuers collectively contribute to a protection fund that enhances investor confidence without relying on external guarantees, government subsidies or additional financing costs.
Supported by extensive quantitative analysis and Monte Carlo simulations, the study findings suggest that the SEF can enhance market stability, broaden the issuer base and facilitate greater participation in the Sukuk market.
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