As an example of how the field known as Shariah finance continues to attract interest in regions with large – and increasingly wealthy – Muslim populations, a conference in Hong Kong has been held to highlight the subject.

As an example of how the field known as Shariah finance continues to attract interest in regions with large – and increasingly wealthy – Muslim populations, a conference in Hong Kong has been held to highlight the subject.

The Hong Kong Monetary Authority and Bank Negara Malaysia yesterday held a joint conference on the topic, examining areas such as the use of sukuk – a form of bond instrument conforming to Islamic law on the prohibition of interest.

Last year, the World Islamic Funds and Financial Markets Conference was told that the global Sukuk market is expected to rise by more over 140 per cent to reach a total of $292 billion by 2016, admittedly still dwarfed by conventional bond markets in North America and Europe.

One stumbling block for more rapid expansion has been the lack of a global standard on what sort of financial instruments are permissible under Shariah law, which bans activities such as charging of interest for money, and gambling. There are perceived differences between relatively liberal jurisdictions, such as Malaysia, and the more conservative counterparts, such as Saudi Arabia.

In his opening remarks at yesterday’s Hong Kong event, the deputy chief executive of the HKMA, Peter Pang, said: "With the tax framework for sukuk in place, Hong Kong's financial platform is ready for sukuk issuance. We highly welcome local and overseas entities to make use of Hong Kong's platform to issue sukuk. To play a lead-off role for this market, we are working closely with the Hong Kong Special Administrative Region Government to prepare for the inaugural issuance of government sukuk under the Government Bond Programme to promote the further development of the sukuk market in Hong Kong."

The conference was attended by around 200 representatives from policymakers, regulatory authorities, corporations, financial institutions, fund management firms, law firms and other stakeholders from Hong Kong, Malaysia and other economies.