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...

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...

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...

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...

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...

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...

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...

Sukuk financing in Nigeria saw a 305.51% increase in the second quarter of 2022 (2Q 2022), rising from NGN 8.17 billion (USD 18.71 million) in the first quarter of 2022 (1Q 2022) ended March to NGN 33.13 billion (USD 75.87 million). Why it Matters? The Nigerian federal government issues a certificate of ownership to an investor when they purchase Sukuk with the promise to buy back the Sukuk at a particular future date in a legally-binding pledge. The funds are invested in assets all throughout Nigeria and investors earn rental income on their investments which is deposi...

The waiting list for Australia’s first Islamic bank, Islamic Bank Australia (IBA), continues to grow with nearly 8,000 people in anticipation of the bank's official launch. The bank was granted a restricted authorised deposit-taking institution (ADI) licence by the Australian Prudential Regulation Authority (APRA) in July 2022 and targets to open to the public by 2024.Why it Matters? Although Australia already has a number of non-bank lenders who provide halal financing choices, the proposed bank would be the nation's first institution of its kind. Many Australian Musl...

The Saudi Real Estate Refinance Company (SRC), the Public Investment Fund's (PIF) wholly owned subsidiary, has announced the issuance of SAR 3 billion (USD 800 million) worth of Sukuk denominated in the Saudi riyal, as part of its recently upsized Sukuk programme, as per a statement by the entity on the 11th of October 2022.  Why it Matters? The issuance represents the fifth in the series under the programme and has a 10-years tenor offered at a fixed profit rate. The SRC will use the funds raised to support originators, financiers, and improve market liquidity, which will s...