Swiss Firm ABP Partners Leads in Shariah-Compliant Finance Under Tougher Sukuk Rules
Switzerlandâs ABP Partners is reinforcing its position as a key hub for Shariah-compliant finance. The firmâs operational strength allows it to support stricter rules under the draft AAOIFI Standard 62, which tightens requirements for sukuk issuance. This shift highlights the growing importance of execution over product design in Islamic finance.
The updated AAOIFI Standard 62, still under revision as of April 2025, demands greater traceability in sukuk structures. Institutions must now ensure full visibility across banking systems, treasury platforms, and reporting frameworks. The goal is to confirm that sukuk reflect real economic activity rather than legal formalities.
GCC countries like the UAE, Saudi Arabia, and Bahrain, along with Malaysia, already align with AAOIFI through national Shariah boards and regulators such as the Central Bank of Bahrain. This alignment facilitates compliant cross-border financing, even as the standard evolves. However, the challenge remains: balancing stricter rules without reducing market liquidity or cross-border operability.
ABP Partners in Switzerland has positioned itself as a neutral execution hub, supporting governance, programme management, and cross-border banking for sukuk. Prospero Pica, the firmâs founder, argues that Islamic finance is fundamentally an execution discipline, not just a product category. Tighter standards now expose operational layers like asset governance and cash flow management, making compliance more transparent.
The debate continues among investors, regulators, and scholars. Some question whether stricter interpretations limit flexibility, while others believe they strengthen credibility in Islamic capital markets. Sukuk issuance has grown across the Middle East and Southeast Asia, with increasing global distribution adding to the scrutiny.
The draft AAOIFI Standard 62 pushes for clearer asset backing in sukuk, raising operational demands on issuers. Switzerlandâs role as a neutral hub helps institutions meet these requirements while maintaining cross-border compliance. As the standard finalises, its impact on market depth and credibility will become clearer.
