Islamic finance: Sukuk for Senegal

When Senegal issued a 100bn CFA franc ($168m) sovereign Islamic bond in June 2014, it beat economic giants Nigeria and South Africa to market and began a race to create a hub for Islamic finance in Africa. Senegalese officials are optimistic about the country's prospects. There is an Islamic bank in Senegal, the Banque Islamique du Sénégal. Alioune N'Diaye, the finance ministry's director for money and credit, also emphasized the good relationship with the Islamic Development Bank (IDB). With a gradual readjustment of tax and other laws to be able to accommodate sharia-compliant financial instruments and growing ties with Gulf states, Senegal could become a prime destination for Arab investors who are looking for higher returns on their money.