Sukuk documentation adapts to AAOIFI standards

Fitch Ratings says that however, it is uncertain if additional changes will be seen in the near term and issuers have exhibited varying degrees of adaptation, while the practical effect of the new documentation has yet to be tested Staff Writer, TradeArabia Changes in global sukuk documentation linked to UAE Central Bank’s adoption of the Accounting […]

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Profitability of Islamic banks will recover to pre-pandemic levels

“After declining in 2020 when the pandemic first struck, the return on average assets for most Islamic banking systems improved in 2021, partly because of lower provisioning needs as economies recovered,” Moody’s Investors Service said Staff Writer, Times of Oman Muscat: The profitability of Islamic banks will improve as provisioning needs decline and net profit margins […]

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Global sukuk issuance projected to reach $257bln by 2027

Global sukuk issuance is projected to moderate this year after a five-year record streak, reaching $185bln in 2022, as benchmark rates rapidly increase and oil prices remain high Jinan AlTaitoon, ZAWYA Global sukuk issuance raised $100.9 billion in the first half of 2022, slightly lower than the $104.2 billion issued during H1 2021, according to the […]

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Egypt’s FRA issues first license for Islamic microfinance activity

by:Fatma Salah, Daily News Egypt, 2022   Egypt – Chairperson of the Financial Regulatory Authority (FRA) Mohamed Farid revealed that the authority issued its first license to a financial institution to engage in financing micro enterprises according to Islamic financing formulas. Farid explained that issuing the new license adds a new dimension to the existing financing mechanisms […]

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Indonesia raises $716.35mln in Islamic bond auction

By Stefanno Sulaiman, Reuters News –, 2022Notes sold on Tuesday carried weighted average yields lower than comparable notes sold in the previous auction JAKARTA – Indonesia raised 10.64 trillion rupiah ($716.35 million) from an Islamic bonds auction on Tuesday, higher than indicative target of 7 trillion rupiah, its finance ministry said. Total incoming bids were 30.85 […]

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Bahri’s $1.04bln unsecured Sukuk oversubscribed 1.95 times

The proceeds from the issuance will be used to refinance the company’s existing Sukuk maturing in July 2022 Staff Writer, TradeArabia, 2022 Bahri, a global leader in logistics and transportation, has said its SR3.9 billion ($1.04 billion) Saudi riyal-denominated seven-year senior unsecured Sukuk has been oversubscribed by 1.95 times. The proceeds from the issuance will be used […]

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Sukuk issuance from core markets down 17.2% in Q2

More than 90% of Fitch-rated sukuk that returned to the market in Q2 of 2022 (2Q22) were investment-grade Staff Writer, TradeArabia, 2022   Total US dollar-denominated sukuk issuance from the core markets of the GCC, Malaysia, Indonesia, Turkey, and Pakistan fell by 17.2% quarter-on-quarter (qoq) in Q2, whilst US dollar bond issuance fell by 63.8%, said Fitch […]

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How sukuk issuances are riding the wave of ESG

By: Edward Tang At the heart of Islamic bonds or sukuk is the idea of responsible investing, little wonder, then, that it should be finding its place in the world of sustainable investment. The demand for sukuk, commonly known as Islamic bonds, is expected to continue with its steady growth as more investors look for […]

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Oman’s plan to introduce Islamic money market instruments is positive for sector

Moody’s says move will also diversify Islamic lenders’ assets Staff Writer, ZAWYA, 2022   Oman’s plan to introduce Islamic money market instruments will support the growth of the Islamic sector and diversify lenders’ assets, according to Moody’s. Last week, the Central Bank of Oman (CBO) announced progress of the planned introduction of Shariah-compliant money market instruments. […]

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State Bank of Pakistan adopts additional four new AAOIFI Shari’ah standards

This makes the total number of standards adopted by SBP 20 Press Release, 2022   Manama, Kingdom of Bahrain: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is pleased to learn that the State Bank of Pakistan has adopted four additional AAOIFI Shari’ah standards. These standards include Shari’ah standard (SS) No. 10 – Salam and […]

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