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Avoiding the Peril of Divergent Net Zero

By Dr. Eman Tabet, Research Associate, RFI FoundationEmerging market financial institutions considering financial risks related to climate change will benefit from some harmonisation of climate scenarios. However, many are more susceptible to physical risks and specific types of transition risk. It is important that the scenarios used for climate risk-related assessment and response are relevant to emerging markets and do not contribute to unevenly shifting transition risk from developed to emerging markets.  Climate models used to create climate scenarios by organisations such as th...

Blake Goud | October 26, 2022

Avoiding the Peril of Divergent Net Zero

Avoiding the Peril of Divergent Net Zero

By Dr. Eman Tabet, Research Associate, RFI FoundationEmerging market financial institutions considering financial risks related to climate change will benefit from some harmonisation of climate scenarios. However, many are more susceptible to physical risks and specific types of transition risk. It is important that the scenarios used for climate risk-related assessment and response are relevant to emerging markets and do not contribute to unevenly shifting transition risk from developed to emerging markets.  Climate models used to create climate scenarios by organisations such as th...

Blake Goud | October 26, 2022

Global Green and Sustainability Sukuk Issuance Reaches USD 4.4 Billion in the First Half of 2022  

The first half of 2022 saw a total of USD 4.4 billion in green and sustainability Sukuk issuance, accounting for 4% of all Sukuk issuance and 1% of environmental, social, and governance (ESG) bond issuance. This comes after a record-breaking annual issuance in 2021 of USD 6.1 billion, according to the Green and Sustainability Sukuk Report 2022: Financing a Sustainable Future by High-Level Working Group (HLWG). Why it Matters? The first green Sukuk, which raised USD 58 million, was issued five years ago in July 2017. During this time, green and sustainability Sukuk have advanced signi...

IM Insights | October 26, 2022

Global Green and Sustainability Sukuk Issuance Reaches USD 4.4 Billion in the First Half of 2022  

Global Green and Sustainability Sukuk Issuance Reaches USD 4.4 Billion in the First Half of 2022  

The first half of 2022 saw a total of USD 4.4 billion in green and sustainability Sukuk issuance, accounting for 4% of all Sukuk issuance and 1% of environmental, social, and governance (ESG) bond issuance. This comes after a record-breaking annual issuance in 2021 of USD 6.1 billion, according to the Green and Sustainability Sukuk Report 2022: Financing a Sustainable Future by High-Level Working Group (HLWG). Why it Matters? The first green Sukuk, which raised USD 58 million, was issued five years ago in July 2017. During this time, green and sustainability Sukuk have advanced signi...

IM Insights | October 26, 2022

Bangladesh to Raise BDT 150 Billion Through Sukuk to Fund Three Local Projects

The Government of Bangladesh has announced its intention to issue Sukuk worth BDT 150 billion to fund three ongoing development projects, according to government officials.  Why it Matters? Bangladesh relies on revenue collection, treasury bills and bonds, bank loans, and savings certificates to cover budget spending. As revenue collection has fallen short of projections and project costs are rising, government officials are now looking for long-term financing of key projects through Sukuk. The new Sukuk financing is anticipated to finance nearly half of three projects...

IM Insights | October 25, 2022

Bangladesh to Raise BDT 150 Billion Through Sukuk to Fund Three Local Projects

Bangladesh to Raise BDT 150 Billion Through Sukuk to Fund Three Local Projects

The Government of Bangladesh has announced its intention to issue Sukuk worth BDT 150 billion to fund three ongoing development projects, according to government officials.  Why it Matters? Bangladesh relies on revenue collection, treasury bills and bonds, bank loans, and savings certificates to cover budget spending. As revenue collection has fallen short of projections and project costs are rising, government officials are now looking for long-term financing of key projects through Sukuk. The new Sukuk financing is anticipated to finance nearly half of three projects...

IM Insights | October 25, 2022

Global Halal Market Anticipated to Reach USD 10 Trillion over Next 5 Years

The size of the global halal market has surpassed USD 7 trillion and is expected to reach USD 10 trillion in the following five years, spanning a wide range of industries including finance, food, tourism, textiles, cosmetics, medicine, and chemistry, according to the sector's stakeholders. Why it Matters? The global halal market has increased in size by more than twofold over the past five years. According to Yunus Ete, World Halal Summit Council Chairperson and Discover Events Chief Executive Officer (CEO), one of the pillars of halal products is hygiene and COVID-19 has influen...

IM Insights | October 21, 2022

Global Halal Market Anticipated to Reach USD 10 Trillion over Next 5 Years

Global Halal Market Anticipated to Reach USD 10 Trillion over Next 5 Years

The size of the global halal market has surpassed USD 7 trillion and is expected to reach USD 10 trillion in the following five years, spanning a wide range of industries including finance, food, tourism, textiles, cosmetics, medicine, and chemistry, according to the sector's stakeholders. Why it Matters? The global halal market has increased in size by more than twofold over the past five years. According to Yunus Ete, World Halal Summit Council Chairperson and Discover Events Chief Executive Officer (CEO), one of the pillars of halal products is hygiene and COVID-19 has influen...

IM Insights | October 21, 2022

UAE’s Arada Developments Obtains USD 100 Million Through Existing Sukuk Reopening 

United Arab Emirates- (UAE) based real estate developer, Arada Developments (Arada), has secured financing worth USD 100 million via Sukuk on the 20th of October 2022 through the reopening of an offering made in May 2022 which had raised USD 350 million, as per a bank document.  Why it Matters?  The reopening transaction comes as Gulf issuers have seized the opportunities to issue in stormy markets, as bond sales dropped in 2022 due to ongoing volatility and rising rates. The order book size was not made public and yielding investors received an 8.386% yi...

IM Insights | October 21, 2022

UAE’s Arada Developments Obtains USD 100 Million Through Existing Sukuk Reopening 

UAE’s Arada Developments Obtains USD 100 Million Through Existing Sukuk Reopening 

United Arab Emirates- (UAE) based real estate developer, Arada Developments (Arada), has secured financing worth USD 100 million via Sukuk on the 20th of October 2022 through the reopening of an offering made in May 2022 which had raised USD 350 million, as per a bank document.  Why it Matters?  The reopening transaction comes as Gulf issuers have seized the opportunities to issue in stormy markets, as bond sales dropped in 2022 due to ongoing volatility and rising rates. The order book size was not made public and yielding investors received an 8.386% yi...

IM Insights | October 21, 2022

Saudi Arabia Announces Sale of USD 2.5 Billion Sukuk with a 6-Year Tenure 

The kingdom of Saudi Arabia (Saudi Arabia) has announced the sale of USD 2.5 billion worth of six-years tenured Sukuk as it held its first international bond sale in almost a year on the 18th of October 2022. Why it Matters? The Sukuk was sold at 105 basis points (bps) over U.S. Treasuries (UST), tightened from an initial guidance of around 135 bps over UST. According to Dino Kronfol, Chief Investment Officer of Global Sukuk and MENA fixed income, Franklin Templeton Investments, demand is expected to be high because issuance in the Gulf region has decreased by about 60% so f...

IM Insights | October 20, 2022

Saudi Arabia Announces Sale of USD 2.5 Billion Sukuk with a 6-Year Tenure 

Saudi Arabia Announces Sale of USD 2.5 Billion Sukuk with a 6-Year Tenure 

The kingdom of Saudi Arabia (Saudi Arabia) has announced the sale of USD 2.5 billion worth of six-years tenured Sukuk as it held its first international bond sale in almost a year on the 18th of October 2022. Why it Matters? The Sukuk was sold at 105 basis points (bps) over U.S. Treasuries (UST), tightened from an initial guidance of around 135 bps over UST. According to Dino Kronfol, Chief Investment Officer of Global Sukuk and MENA fixed income, Franklin Templeton Investments, demand is expected to be high because issuance in the Gulf region has decreased by about 60% so f...

IM Insights | October 20, 2022

Islamic Development Bank Gives Initial Price Guidance for 5-year Sukuk 

The Islamic Development Bank (IsDB) has placed an initial price guidance for five-year tenured Sukuk at around mid-60s basis points over the five-year U.S. secured overnight financing rate (SOFR) and the offering is expected to be priced on the 20th of October 2022, according to a bank document.  Why it Matters? Considering markets volatilities and rising interest rates in 2022, new bond issues in the Gulf region have fallen precipitously. The 18th of October 2022, however, saw three issuances as Saudi Arabia raised USD 5 billion through Sukuk and bonds, Mubadala Investment...

IM Insights | October 20, 2022

Islamic Development Bank Gives Initial Price Guidance for 5-year Sukuk 

Islamic Development Bank Gives Initial Price Guidance for 5-year Sukuk 

The Islamic Development Bank (IsDB) has placed an initial price guidance for five-year tenured Sukuk at around mid-60s basis points over the five-year U.S. secured overnight financing rate (SOFR) and the offering is expected to be priced on the 20th of October 2022, according to a bank document.  Why it Matters? Considering markets volatilities and rising interest rates in 2022, new bond issues in the Gulf region have fallen precipitously. The 18th of October 2022, however, saw three issuances as Saudi Arabia raised USD 5 billion through Sukuk and bonds, Mubadala Investment...

IM Insights | October 20, 2022

Banks Face a Tsunami of Transition Plans

Without a way to harmonise the content of transition plans, such as those GFANZ outlines as current standard practice, banks are likely to ignore most of what their customers are doing, which erodes the effectiveness of their own Net Zero finance strategies. With a proliferation of Net Zero pledges, financial institutions are grappling with how they will evaluate the plans they receive from customers without adding substantial time and cost to the processGFANZ guidance on financial institution reviews of customer transition plans will help lay the groundwork for greater harmonisation &nda...

Blake Goud | October 19, 2022

Banks Face a Tsunami of Transition Plans

Banks Face a Tsunami of Transition Plans

Without a way to harmonise the content of transition plans, such as those GFANZ outlines as current standard practice, banks are likely to ignore most of what their customers are doing, which erodes the effectiveness of their own Net Zero finance strategies. With a proliferation of Net Zero pledges, financial institutions are grappling with how they will evaluate the plans they receive from customers without adding substantial time and cost to the processGFANZ guidance on financial institution reviews of customer transition plans will help lay the groundwork for greater harmonisation &nda...

Blake Goud | October 19, 2022

Saudi Arabia’s National Debt Management Center Concludes SAR 3.12 Billion Sukuk Issuance

The Kingdom of Saudi Arabia’s (Saudi Arabia) National Debt Management Center has announced the closure of its October SAR-denominated Sukuk worth SAR 3.12 billion (USD 832 million), as per a statement by the establishment on the 18th of October 2022. Why it Matters? The offering received SAR 700 million (USD 186 million) in total bids and was made up of three sukuk tranches. The first tranche is worth SAR 300 million (USD 80 million) and matures in 2029; the second tranche is worth SAR 300 million (USD 80 million) and matures in 2032. The third tranche is worth SAR 100 mill...

IM Insights | October 19, 2022

Saudi Arabia’s National Debt Management Center Concludes SAR 3.12 Billion Sukuk Issuance

Saudi Arabia’s National Debt Management Center Concludes SAR 3.12 Billion Sukuk Issuance

The Kingdom of Saudi Arabia’s (Saudi Arabia) National Debt Management Center has announced the closure of its October SAR-denominated Sukuk worth SAR 3.12 billion (USD 832 million), as per a statement by the establishment on the 18th of October 2022. Why it Matters? The offering received SAR 700 million (USD 186 million) in total bids and was made up of three sukuk tranches. The first tranche is worth SAR 300 million (USD 80 million) and matures in 2029; the second tranche is worth SAR 300 million (USD 80 million) and matures in 2032. The third tranche is worth SAR 100 mill...

IM Insights | October 19, 2022

Bangladesh Securities and Exchange Commission to Establish Shariah Council to Accommodate Shariah-based Investors

The Bangladesh Securities and Exchange Commission (BSEC) is set to establish a Shariah council in conformity with a new regulation designed for the purpose of accommodating more Shariah-based investors and enhancing the quantity of Shariah-based securities in Bangladesh's market Why it Matters?  In the past five years, Bangladesh’s stock market has seen the issuance of new Shariah-based products such Sukuk, perpetual Mudaraba bonds, and Shariah-compliant mutual funds. Any disagreement or issue developing in the management of these securities, however, could not be sett...

IM Insights | October 18, 2022

Bangladesh Securities and Exchange Commission to Establish Shariah Council to Accommodate Shariah-based Investors

Bangladesh Securities and Exchange Commission to Establish Shariah Council to Accommodate Shariah-based Investors

The Bangladesh Securities and Exchange Commission (BSEC) is set to establish a Shariah council in conformity with a new regulation designed for the purpose of accommodating more Shariah-based investors and enhancing the quantity of Shariah-based securities in Bangladesh's market Why it Matters?  In the past five years, Bangladesh’s stock market has seen the issuance of new Shariah-based products such Sukuk, perpetual Mudaraba bonds, and Shariah-compliant mutual funds. Any disagreement or issue developing in the management of these securities, however, could not be sett...

IM Insights | October 18, 2022

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