Finance Saudi Arabia’s PIF invests $200m in JP Morgan fund Saudi Arabia’s Public Investment Fund has invested $200 million in a recently launched exchange-traded fund that tracks dollar-denominated bonds and sukuk issued by the kingdom’s government and quasi-state entities. The JP Morgan Saudi Arabia Aggregate Bond UCITS ETF, created in mid-December, is the first internationally listed fixed-income Saudi Arabian ETF. As such, it “further deepens […] January 9, 2025
Finance Saudi Arabia’s PIF secures $7bn investment financing Saudi Arabia’s Public Investment Fund (PIF) has raised $7 billion to finance future investments. The fund’s murabaha credit facility – a common Islamic financing tool in which buyer and seller agree to cost and markup of an asset – was supported by a syndicate of 20 international and regional financial institutions, PIF said in a statement. […] January 6, 2025
Analysis Finance GCC sukuk’s best-kept secret: Dublin For many people, the city of Guinness and James Joyce may not be the first place that comes to mind when thinking about Islamic bonds. Yet, according to a report last month from Fitch Ratings, the Dublin stock exchange – Euronext Dublin – is now the world’s largest listing venue for hard currency global sukuk. […] December 5, 2024
Banking & Finance Saudi Arabia’s debt rule changes could increase sales Saudi Arabia’s market regulator has simplified its sukuk and bond issuance rules in reforms that should boost debt sales by both domestic and international entities in Riyadh, a top Islamic finance expert told AGBI. The kingdom’s debt capital market had $408 billion of outstanding issuance as of June 30, up 18 percent versus a year […] November 14, 2024
Banking & Finance Investment banks enjoy fee windfall from debt issuance Investment banking fees on bond and sukuk issuance in the Middle East and North Africa (Mena) have surged this year as governments, corporations and commercial banks raise increasing amounts of debt to meet their funding needs. Mena debt capital market underwriting fees in the first nine months of 2024 rose 74 percent year on year […] October 23, 2024
Opinion Banking & Finance IMF proves Saudi banks have reasons for optimism Over the long term the kingdom’s banks will benefit from the scale of spending on Vision 2030 projects October 23, 2024
Finance Aramco’s $3bn sukuk oversubscribed six times Saudi Aramco, the world’s largest oil producer, said its $3 billion sukuk was oversubscribed by six times. The sukuk was issued in two US dollar-denominated tranches, each valued at $1.5 billion. The tranches, maturing in 2029 and 2034, carry annual profit rates of 4.25 percent and 4.75 percent, respectively, the company said in a statement. […] October 3, 2024
Analysis Finance Maldives nears first sovereign default on Islamic bonds The possibility of the first ever sovereign sukuk default by the Maldives would have negative repercussions for new sukuk issuance and the broader sharia-compliant fixed income market, industry experts have warned. Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by many Muslims as they pay […] September 30, 2024
Opinion Banking & Finance Kuwait’s first banking merger is long overdue There have been bank mergers in every other GCC state – Kuwait might finally join the club September 20, 2024
Banking & Finance Qatar Islamic Bank sukuk three times oversubscribed Qatar Islamic Bank, the Gulf state’s largest Islamic lender, has raised $750 million through a new sukuk (Islamic bond) issue. The five-year unsecured sukuk was priced at 100 basis points over US Treasuries at 4.485 percent, the lowest rate achieved by a lender in the GCC, the lender said in a statement. The sukuk order […] September 11, 2024
Opinion Banking & Finance The bullish case for the GCC’s sovereign bonds and sukuk Riyadh's budget deficit necessitates at least $13-$14 billion of new bond issuance in both 2025 and 2026 August 27, 2024
Finance Qatari company launches first local currency sukuk Doha-based Estithmar Holding has issued a QAR500 million ($137 million) sukuk (Islamic bond), the first corporate local currency-denominated sukuk in the country. This issuance is the first tranche of its QAR3.4 billion sukuk programme, listed on the London Stock Exchange’s international securities market. The three-year sukuk offers 8.75 percent coupons, attracting interest from banks, insurance companies and […] August 27, 2024
Finance Kuwaiti lenders propose merger to create $50bn Islamic bank Boubyan Bank and Gulf Bank, two of the largest Kuwait-listed shariah-compliant lenders, are set to commence an initial feasibility study for a potential merger. The merged entity will be among the largest Islamic banks with more than $50 billion in assets. In separate statements to Boursa Kuwait, the two lenders said they will conduct due […] August 1, 2024
Opinion Markets Regional debt issuance boosts Islamic bond take-up Large Muslim countries have skewed global sukuk markets July 19, 2024
Finance Sharia standard 62 may disrupt sukuk market, says S&P Global sukuk issuances are likely to suffer next year if the proposed standard 62 sukuk changes to sharia guidelines are implemented, according to credit rating agency S&P. “Adopting Accounting and Auditing Organization for Islamic Financial Institutions standard 62 guidelines as they have been presented could disrupt the market,” it said in a new report. The […] July 19, 2024
Opinion Finance Sharia index is tentative step for Islamic finance in Egypt Egyptian governments and investors have an awkward relationship with sharia-compliant finance June 26, 2024
Finance UAE raises $1.5bn from 10-year bonds The UAE has secured $1.5 billion from the sale of long-term bonds, according to a news report. The government sold 10-year bonds priced at 60 basis points over US Treasuries, Reuters reported, citing bank documents. The initial price guidance was lowered from 90 bps after demand reached $5.75 billion, the report said. The total debt […] June 26, 2024
Analysis Markets Hopes high for Egypt’s shariah-compliant index The Egyptian stock exchange has announced the launch of a long-awaited shariah-compliant index, a move observers say is likely to attract new investors and boost the North African country’s latent Islamic banking sector. Gulf investors are said to be particularly interested. The chairman of the Egyptian Exchange (EGX), Ahmed el Sheikh, announced that the new […] June 13, 2024
Analysis Economy Saudi new mortgage approvals rebound A greater supply of affordable housing and a growing resignation among prospective house buyers that interest rates are unlikely to fall substantially is helping to propel a rebound in new residential mortgages in Saudi Arabia. Under Vision 2030, Saudi Arabia set a target to increase home ownership among the kingdom’s adult citizens to 60 percent […] June 5, 2024
Banking & Finance Saudi Arabia issues $17bn Islamic bonds after early repayment Saudi Arabia has issued new sukuk (Islamic bonds) worth SAR64 billion ($17 billion) following the early purchase of over SAR63 billion of outstanding debt. The initiative aims to bolster the domestic market, the National Debt Management Centre (NMDC), which manages the Saudi government’s debt obligations and future maturities, said in a statement. The new sukuk […] May 31, 2024
Banking & Finance Saudi Arabia’s new sukuk order book hits $20bn Order books for Saudi Arabia’s $5 billion Islamic bond (sukuk) reached $20 billion, according to news report. The kingdom, the world’s top oil exporter, sold tranches of $1.25 billion, $1.5 billion and $2.25 billion, reported IFR, a London Stock Exchange Group publication. The bonds have durations of three, six and 10 years, respectively. Spread on […] May 29, 2024
Banking & Finance Emirates Islamic Bank’s green sukuk orders hit $1.9bn The Islamic unit of Emirates NBD, Dubai’s largest lender, has launched a $750 million green sharia-compliant sukuk. The indicative price for Emirates Islamic Bank’s (EIB) 5-year sustainability sukuk was set at 100 basis points over US Treasuries, Reuters reported, citing a document from an arranging bank. The issuance, part of EIB’s $2.5 billion certificate issuance […] May 22, 2024