Islamic Finance

The Long View from the GCC: Ahmed Al Qassim, CEO, Emirates NBD Capital

This year has seen liquidity thinning out in oil dependent markets due in large part to declining oil revenues, a particularly impactful trend in the GCC. In response, many of the region’s investment banks have gone back to basics, becoming more selective on deals and focussing on their core strengths in particular niches. But the region’s challenges have left others – particularly those with a…

7 Nov 2016

Sukuk in MENA: Two tranche or not to tranche?

This year has so far seen a rapid expansion in bonds and to a lesser extent sukuk issued from the GCC, largely led by many of the region’s sovereigns and financial institutions. Speed, standards, and liquidity concerns are keeping some issuers from tapping into the sukuk market to achieve their funding objectives, analysts suggest.

17 Oct 2016

Sukuk popularity growing across Africa

Sukuk are becoming increasingly prevalent across Africa following Senegal’s upsized issuance and planned notes from the Cote d’Ivoire and Togo. Further capital market reforms are needed, however, to assist in their development which will allow for African nations to tap the Middle Eastern Islamic investor base.

3 Oct 2016

Why Brexit May Widen the Islamic Finance Playing Field

Brexit may introduce new players to compete with the UK in Islamic Finance footraceCould Brexit contribute to the rise of new global players in Islamic Finance? While the spread of Islamic Finance outside the GCC has been gaining pace, it remains to be seen whether Brexit could derail the rise of London and the UK’s position as a global hub for Sharia compliant investing.

20 Sept 2016

CASE STUDY: Equate Sets M&A Financing Benchmark with Dual Tranche Bridge Loan

Kuwait-based Equate Petrochemical’s US$6bn conventional and Islamic dual-tranche acquisition bridge loan was one of the largest deals of its kind in the region, maximising stakeholder liquidity while helping to create a regional petrochemicals powerhouse.

12 Sept 2016

Investors weary of new GCC debt as Fed outlook remains uncertain

With a number of GCC issuer looking to wrap up their bond deals before the end of Q3 after what has already been a record year for credit volume in the region, there are signs fixed income investors are starting to grow weary as uncertainty around the Fed’s decision to raise rates persists. The region's credit could suffer as a result.

2 Sept 2016

Sukuk index debut positive, but more work is needed for further globalisation

In Q4 2016 a select few sukuk will be listed on JP Morgan’s EMBI. The inclusion of Islamic bonds is positive for the growth of the industry, and conventional investors will likely buy into such instruments following their inclusion. However, for wider acceptance amongst the international investor community, analysts suggest further global standardisation of sukuk will be necessary.

24 Aug 2016

Nigeria’s planned sukuk will unlock new pockets of investors

Nigeria’s Securities and Exchange Commission has announced the date for the country’s debut sukuk. Although complications in establishing a supportive legal framework have delayed its issuance, other factors such as establishing the proposed sukuk’s client base have to be addressed.

16 Aug 2016

CASE STUDY: Turkey’s first Basel-III compliant Tier II sukuk

Albaraka Turk saw strong demand from the MENA region for its US$250mn Basel III-compliant Tier II sukuk, the first seen from Turkey, against a backdrop of emerging market turmoil and political volatility.

1 Jul 2016

CASE STUDY: DP World issues largest single-tranche sukuk in ME since 2014

DP World’s recent US$1.2bn sukuk maturing in 2023 is the first gross throughput capacity-based wakala sukuk structure in the global ports industry. The issuance is also the largest single tranche corporate sukuk to emerge from the Middle East since 2014.

8 Jun 2016

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