Not every country has managed to beat the expectations and outperform during 2021. Let us shed light on Saudi Arabia’s local and hard currency sovereign bonds and Sukuk which are expected to gain some interest in 2022.Fixed income investors, exposed to the Saudi international debt, had received pleasant news over the announcement of the Saudi budget (i.e. expected USD 24 billion budget surplus in 2022). Saudi Arabia beat the expectations of the International Monetary Fund (IMF) and managed to lower its debt-to-GDP ratio to 29.2% in 2021.National debt would remain at SA...

Saudi-based Alkhorayef Water and Power Technologies (AWPT) increased its Shariah-compliant credit facility with Arab National Bank (ANB) by SAR 50 million (USD 13.33 million) from SAR 277.2 million (USD 73.92) to SAR 327.2 million (USD 87.25 million) on the 6th of January 2022.Why it Matters? This facility will allow AWPT to issue letters of guarantee and credit, finance new projects, invoice financing and cover expenditure financing.Details The announcement also stated that the security provided against financing under a promissory note was increased by SAR 50,000 (USD 13.33 million)...

Dakar, Senegal's capital and largest city, saw the inauguration of the Dakar Regional Express Train (TER) on the 27th of December 2021. The event was attended by the President of Senegal Macky Sall and Musa Sillah, Director of the Islamic Development Bank (IsDB), Regional Hub of Dakar, representing IsDB President, H E Dr Muhammad Sulaiman Al Jasser.Why it Matters? The project was co-financed by the IsDB to connect Dakar city centre to Diamniadio in a 20-minute journey. It represents the first express train service in Sub-Saharan Africa and is expected to significantly reduce road traffic c...

Saudi National Bank (SNB), the country’s largest lender, has appointed several banks to arrange the sale of its first US dollar-denominated sustainable Sukuk with a maturity period of five years. The offering size remains undetermined but is anticipated to be of a benchmark size, which typically amounts to at least USD 500 million, according to an investor presentation by the bank.Why it Matters? Proceeds from the offering will be utilised to finance projects for the development of renewable energy-generating facilities and for financing related to tree planting projects.Details...

Saudi Arabia experienced a notable increase in venture capital investments for its financial technology (fintech) sector, with 16 signed deals amounting to USD 157.2 million in the first eight months of 2021.Why it Matters?The development of the fintech sector is in line with Saudi Vision 2030 and the Financial Sector Development Program launched in 2017, which were set to advance the digital economy and financial intermediaries as well as support growth in the private sector. According to the Fintech Saudi Annual Report 2021, only 7 venture capital deals worth USD 7.8 million were recorde...

The Egyptian government is working closely with the Financial Regulatory Authority (FRA) and Al-Azhar University to finalise the executive regulations of the Sovereign Sukuk Act by the end of the month in order to issue its first Sovereign Sukuk of USD 2 Billion by mid-year 2022.Why it Matters?The issuance of Egypt’s Sovereign Sukuk is aimed at reducing government debt and moving towards longer-term borrowing. Mohamed Hegazy, Head of the Debt Management Unit at the Egyptian Ministry of Finance, noted that legal and technical matters are to be finalised according to formulas that are...

On the 6th of January 2022, The National Commercial Bank (NCB), also known as AlAhli Bank, has concluded the final phase of its merger with Riyadh-based Samba Financial Group to become The Saudi National Bank (SNB).Why it Matters?According to a bourse filing, SNB is now believed to be the largest bank in Saudi Arabia, with assets exceeding SAR 900 billion (USD 240 billion) and capital amounting to SAR 44.7 billion (USD 11.92 billion). The new entity will support social prosperity and economic transformation in Saudi Arabia, supported by a market share of 31% and its 12,000 employees in the...

Malaysian-based agri-business FGV Holdings Bhd (FGV) has made the first issuance of its MYR 500 million (USD 118.78 million) Sukuk Murabahah Programme on the 31st of December 2021.Why it Matters?The utilisation of the proceeds of the programme shall always be for Shariah-compliant purposes and will refinance FGV's existing financing or borrowing.Details The Sukuk issuance will not affect the issued and paid-up share capital of FGV and/or the shareholding in FGV.After receiving an endorsement from the Securities Commission Malaysia's (SC) Shariah Advisory Council for the programme on...

Indonesia's flag carrier Garuda Indonesia (Garuda) has proposed to holders of its USD 500 million Sukuk to switch parts of the debt to equity, take a lesser than optimal return and extend the Sukuk tenure to 10 years as part of the airline's debt restructuring efforts.Why it Matters?Garuda has an estimated USD 9.8 billion of outstanding liabilities and has been operating on a negative cash flow throughout the COVID-19 pandemic due to the decline in air travel. The airline is undergoing a Jakarta court-led debt restructuring, known as Suspension of Debt Payment Obligations (PKPU),...

New York-based financial investment company Wahed Invest (Wahed) has launched a Shariah-compliant and ESG-aware Exchange-Traded Fund (ETF), the Wahed Dow Jones Islamic World ETF (UMMA ETF). The ETF started trading on the Nasdaq Stock Market (Nasdaq) with the ticker symbol UMMA, which roughly translates to the word "community", on the 7th of January 2022.Why it Matters?The UMMA ETF tracks the Dow Jones Islamic Market International Titans 100 Index with additional screening further applied mainly for environmental, social, and corporate governance (ESG) considerations. Wahed's Chief Investme...