The entry of Hong Kong, the UK and Luxembourg into sukuk markets will be interesting to watch, but will not be large enough to provide sufficient size to impact the market. The UK and HK in particular, will have more limited appeal being denominated in HKD and GBP while Luxembourg could offer EUR or USD sukuk (the former is probably more likely).
The problem is that the banks where the need for highly rated sukuk is the highest are mostly in countries where the currency is linked to the USD, so issuance in HKD, GBP or EUR will hold limited appeal. They are more likely to look towards to domestic markets where the government can, at last resort, always avoid a default for local investors by printing more local currency (which is more important for banks whose other assets and liabilities are predominately local currency denominated.
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