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Wethaq (Capital Markets), a FinTech regulated by the Dubai Financial Services Authority (DFSA), announces that it has joined as a member of the RFI Foundation as it seeks opportunities to facilitate more green, social and sustainable sukuk, and demonstrate its commitment as a ‘responsible FinTech’. Wethaq, which is focused on improving the market infrastructure supporting the issuance, administration and distribution of Sukuk securities sees a substantial opportunity for sukuk which today makes up only a small part of the green, social and sustainable bond market.
Wethaq sees an opportunity using its technology to digitize the costly and lengthy elements of sukuk issuance process to streamline the process for issuing into what the Climate Bonds Initiative estimates is a $350 to $400 billion primary market in 2020. With additional requirements for issuers to pursue green, social and sustainable sukuk, there is an opportunity for issuers to streamline the process using Wethaq’s technology.
Both issuers and Islamic investors will benefit with increased supply of green, social and sustainable sukuk which is projected to grow by 50% this year. The UAE will be a source of increased demand in 2020 supported by as investors and financial institutions begin to align their operations with the recently announced Guiding Principles for Sustainable Finance, which covers both Islamic and conventional investors and financial institutions.
By joining RFI Foundation, Wethaq will be able to link up with a global network of institutions including many who are active in leading the adoption of responsible finance within Islamic finance. In addition to the footprint in Islamic finance, the RFI Foundation is unique by promoting awareness for the role that Islamic finance has within the global responsible finance industry.
Mohammed Alsehli, CEO of Wethaq, commented: “We look forward to being an active member in the RFI Foundation. RFI has brought together a critical mass of participants interested in the development of Islamic finance which will support our vision to increase the supply of green, social and sustainable sukuk as a part of the work required to build up the supply of sukuk to meet demand from banks, asset managers and others whose demand has gone unmet to date.”
Blake Goud, CEO of RFI Foundation added: “We are excited for Wethaq to join the RFI Foundation and see increasing focus from capital market participants including issuers and investors who will take the efficiencies offered by Wethaq’s technology to increase the share of green, social and sustainable sukuk being issued.”
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