Banking and Finance Saudi’s Al Rajhi Bank to raise $1bn via sustainable sukuk Saudi Arabia’s Al Rajhi Bank is set to raise $1 billion with five-year sustainable Islamic bonds, according to a media report. The spread on the sukuk was set at 110 basis points (bps) over US Treasuries (UST), tightened from initial price guidance of around 150 bps over UST after demand topped $3.75 billion, Reuters reported, […] March 30, 2023
Banking and Finance Saudi’s Al Rajhi Bank plans dollar sustainable sukuk Al Rajhi Bank is planning to issue US dollar-denominated sustainable Islamic bond, as part of its international sukuk programme launched last year. Al Rajhi Capital, Citigroup Global Markets Limited, Emirates NBD, Goldman Sachs, HSBC, JPMorgan, KFH Capital and Standard Chartered are joint lead managers and bookrunners for the sukuk issuance, the Saudi-listed bank said in […] March 28, 2023
Analysis Banking and Finance A first as Dubai bank prices $600m sukuk for US firm Emirates NBD, Dubai’s largest bank, has successfully priced a $600 million sukuk for New York-listed Air Lease Corporation. It marks the first sukuk issued by a US corporation. A sukuk is a Sharia-compliant financial certificate, similar to a bond in Western finance but that complies with Islamic religious law. The five-year sukuk saw robust demand, […] March 26, 2023
Sustainability Top Gulf banks help raise $787m in sustainable credits Two leading Gulf banks have helped arrange nearly $800 million in sustainability-linked loans for a leading agricultural producer based in Singapore, as local institutions prioritise green lending in their portfolios. First Abu Dhabi Bank (FAB), the UAE’s largest bank by assets, and National Bank of Kuwait, the country’s biggest financial institution, acted as lead arrangers, […] February 24, 2023
Banking and Finance PIF’s $5.5bn green bond sets tone for ‘strong pipeline’ in Mena Saudi Arabia’s sovereign Public Investment Fund has raised $5.5 billion through its latest green bond issuance, supporting expectations of a strong year for sustainable bonds in the Middle East. The issuance was more than six times oversubscribed – with books exceeding $33 billion – and will be used to finance or refinance eligible green projects, […] February 13, 2023
Banking and Finance UAE tops international ranking for green finance commitment The UAE has been recognised for its commitment to financing a green and sustainable future. The Gulf state recorded the highest scores among several key markets in the Financial Services: State of the Nation Survey 2022, which spoke to 758 managers at financial institutions and banks across France, Germany, Hong Kong, Singapore, the UK, the […] January 25, 2023
Banking and Finance Dubai Islamic Bank’s profit rises 26% to $1.5bn in 2022 Dubai Islamic Bank’s (DIB) net profit rose 26 percent year-on-year to AED5.55 billion ($1.51 billion) in 2022 due to higher revenue, prudent cost management and sustained lower impairments. Chairman Mohammed Ibrahim Al Shaibani revealed that DIB achieved its strongest year in its history as total income reached AED14 billion, a 20 percent YoY growth and […] January 25, 2023
Analysis Banking and Finance Saudi SMEs look to sharia funding to balance cash flow In Saudi Arabia, small to medium-sized companies are increasingly turning to sharia-compliant funding to raise money for their businesses. But rather than borrow from banks, these SMEs instead rely on the kingdom’s nascent fintech sector to obtain bridging loans, invoice financing and other kinds of niche financial support. “SMEs are underserved by the banking sector, […] January 24, 2023
Opinion Banking and Finance The three sources of risk GCC banks must look out for in 2023 The cost of risk in the Gulf is expected to normalise and bank earning levels should recover to near pre-pandemic levels by the end of 2022 December 12, 2022
Banking and Finance MAF clinches $1.25bn sustainability-linked loan UAE-based retail group Majid Al Futtaim (MAF) has secured its second sustainability-linked loan as part of its strategy to become ‘net carbon positive’ by 2040. The $1.25 billion-equivalent revolving credit facility with First Abu Dhabi Bank was agreed on Monday. MAF, which owns and operates 29 shopping malls across the Middle East and Africa as […] December 5, 2022
Banking and Finance Younger Arabs invest in equity markets, tech and Islamic finance Nearly three-quarters of rich young Arabs believe equity markets will continue to perform well and are actively planning to invest, with regional entities, Islamic finance, technology and sustainability their key priorities. Geneva-headquartered global wealth and asset management company Lombard Odier surveyed around 200 high net worth individuals with assets of at least $1 million across […] November 24, 2022
Banking and Finance Calculating hyperinflation is ‘top priority’ for Islamic banks Islamic banking’s top rule maker is racing to create a new accounting standard to calculate the impact of hyperinflation. Changes to sharia-compliant accounting practices could make some account holders liable for banks’ losses related to soaring prices. Under IFRS accounting standards, which are commonly used worldwide, there is a clause, IAS 29, that covers hyperinflation. […] November 9, 2022
Banking and Finance Islamic finance to grow 10%, but struggles in new markets The global Islamic finance industry will expand by 10 percent in 2022 and 2023 thanks to strong economic growth in core markets, high commodity prices and relatively little impact from the Russia-Ukraine war. However, data from S&P Global Ratings forecasts shows that the sector has struggled to make inroads in non-traditional markets outside the Gulf. Excluding […] October 27, 2022
Analysis Banking and Finance Mena debt market slumps in year of Fed hikes and high oil prices Debt issuance has plunged in the Middle East and North Africa this year, with interest rate volatility deterring would-be issuers and oil exporters’ huge fiscal surpluses reducing their need to offer bonds or sukuk. Mena debt sales in the first nine months of 2022 were $18.3 billion, down 80 percent year-on-year and the lowest total […] October 25, 2022
Markets Gulf countries defy global gloom with bond sale plans Saudi Arabia, Mubadala and Emirates NBD are preparing to sell bonds and sukuk, despite market volatility that has put off other issuers October 18, 2022
Analysis Banking and Finance Islamic finance set to embrace metaverse and cryptos The Islamic finance industry is ripe for growth in the fields of crypto, digital assets and open banking, according to new research published by IslamicMarkets.com. A study published this week by the platform found that nearly two-thirds (63 percent) of Islamic finance professionals predict the sector’s level of adoption of crypto and digital assets will […] September 27, 2022
Analysis Banking and Finance Sukuk issuances slow as belt tightens around the world Global sukuk issuance is projected to moderate, settling at $185 billion in 2022, amid a worldwide tightening cycle and a surge in oil prices. However, sukuk issuance is still projected to grow at an estimated compound annual growth rate (CAGR) of 6.8 percent over the next five years, reaching $257 billion in 2027, according to […] September 16, 2022
Analysis Something old, something new: The Quran goes NFT In a novel merging of yesterday and tomorrow, one million people have been invited to purchase a non-fungible token (NFT) version of a rare copy of the Quran. MetaDee, a London-based digital NFT marketplace offering artworks and rare collectibles from around the world, has tokenised an exclusive handwritten Holy Quran manuscript by the personal scribe […] September 4, 2022
Banking and Finance Oman’s Islamic banking assets rise 9.6% to $16.1bn Total assets of Islamic banks and windows operating in Oman jumped by 9.6 percent year-on-year to OR 6.2 billion ($16.1 billion) in June 2022, Muscat Daily reported, citing Central Bank of Oman data. Islamic banking assets account for 15.9 percent of the country’s total banking system assets. An Islamic ‘window’ when a conventional financial institution […] August 30, 2022
Analysis Banking and Finance Global Islamic fintech market set to hit $179bn in 2026 The global Islamic fintech market recorded $79 billion in transaction volumes in 2021. And it is expected to grow by around 18 percent annually to reach $179 billion by 2026, according to the Global Islamic Fintech (GIFT) Report 2022 launched on Thursday. “Covid and the subsequent digitisation push has helped to accelerate the pace at […] July 29, 2022
Analysis Retail Net zero is old hat, says the mall owner that wants to go bigger Sustainability is high on the agenda of the region’s major retailers, and in early July, Majid Al Futtaim gave an insight into what it is doing to limit its environmental impact, with the release of its latest environmental, social and corporate governance (ESG) report. The retailer, which owns and operates 29 shopping malls across the […] July 27, 2022
Economy Biden brings Palestinians aid but no new peace plan US President Joe Biden will not come with a plan to restart the stalled Israel-Palestinian peace process when he visits the West Bank on Friday, at the end of the first leg of his Middle East trip, a senior administration official said. Biden will restate his backing for a two-state solution to the decades-long conflict […] July 15, 2022
