Individuals will be allowed to invest in Islamic bonds on Nasdaq Dubai by 2019, according to remarks from its chief executive.
The exchange is in talks with the Dubai International Finance Centre (DIFC), the industry watchdog, about developing a “product which provides a minimal investment limit” and “sharia-compliant interest rate”, said Hamed Ahmed Ali to the Al-Bayan newspaper.
The technical infrastructure for such a product is being prepared with the aim of producing a simplified system for the retail investment market, he added.
Efforts have been made over the last few years to expand the Islamic bond market beyond its current institutional market.
In April this year, the Dubai Islamic Economy Development Centre, a body which promotes the government’s Islamic finance initiatives, announced it was working with Nasdaq Dubai to introduce sukuk instruments for retail investors.
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