LANGUAGES

Entries in English and Malay (Bahasa Melayu)

Thursday, 17 September 2015

Indonesia lists world's biggest sukuk in Dubai

Indonesia listed on Sunday four sukuk valued at Dh22 billion - the largest ever carried out by a sovereign issuer on Nasdaq Dubai - as Dubai further reinforced its position as the world's leading hub for Islamic economy.
Indonesia's Finance Minister Bambang Bodjonegoro, who rang the market-opening bell to celebrate the listing of the Islamic bonds said it was an important step forward in further strengthening his country's ties with the UAE and the wider Middle East.
With the new listings, Dubai, which had already overtaken rival financial centres to become the world's leading sukuk hub in line with the goal set by the leadership, has boosted the listed nominal value of sukuk to Dh135 billion, with Nasdaq Dubai accounting for 93 per cent of that amount.
Sunday's sukuk listings are the largest ever carried out by a sovereign issuer in Dubai, underscoring the Emirate's growth as the global capital of the Islamic Economy.            
Bodjonegoro said Indonesia, the biggest Muslim nation with a total population of 255 million people, is a frequent sukuk issuer in the global market. "Since our international debut in 2009, we have issued global sukuk valued at 7.65 billion dollars," he said.
The minister said the latest listings underlined importance of sukuk as a global sovereign financial tool for investment and development and strengthen confidence in Islamic finance regulatory environment in Dubai and the UAE. 
Mohammed Abdulla Al Gergawi, the UAE Minister for Cabinet Affairs and Chairman of the Dubai Islamic Economy Development Centre, said the listing of the Indonesian sukuk was a milestone in the drive by Dubai to become the capital of the global Islamic economy.  
Gergawi said Sunday's listing would play a significant role in attracting further sukuk from around the world and further strengthen global confidence in Dubai as the capital of the Islamic Economy. It will encourage more countries and  corporations to utilise sukuk as a financial sovereign and investment tool in their development plans in the medium and long term.
Nasdaq Dubai attracted sukuk listings valued at $13.4 billion in 2014 and has added $12.6 billion so far in 2015.
By July, Dubai has overtaken other Islamic bond markets as the value of sukuk listed on the emirate's exchanges hit $36.7 billion, ahead of the world's three traditional sukuk centres: Malaysia, with $26.6 billion listed on Bursa Malaysia and the Labuan free trade zone, the Irish Stock Exchange with $25.7 billion, and the London Stock Exchange with $25.1 billion.
Leadership in global sukuk was a goal set by His Highness Shaikh Mohammed bin Rashid Al Maktum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in his 2013 initiative to make the emirate the capital of the Islamic economy.
 While 56 per cent of Dubai's listed sukuk are from UAE issuers, 22 per cent are from Saudi Arabia. Ali said he wanted the proportion from the Gulf countries outside the UAE to grow.
The four sukuk listings by the Indonesian government under its Trust Certificate Issuance Programme comprise one issuance of $2 billion, two of $1.5 billion each, and one of $1 billion.  
"The success of Dubai's Islamic capital markets is based on our deep-rooted traditions in this field and the profound knowledge of the many experts based within the Emirate. We are delighted to collaborate with issuers and other specialists around the globe to maintain the growth of the sector for the benefit of all participants," said Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said the exchange would further develop its close ties with international and regional investors,  underpinning the global visibility of the sukuk issued by the government of Indonesia. "Nasdaq Dubai is positioned to support many more Islamic capital-raising activities by governments and public and private sector issuers around the world."
Hamed Ali, Chief Executive of Nasdaq Dubai, said  Nasdaq Dubai is continually  enhancing its swift and responsive listing process, as well as its comprehensive post-listing services. "We are committed to introducing further innovation and product development across the Islamic capital markets sector.
(Khaleej Times / 14 September 2015)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Lifting of Iran sanctions to fuel Islamic finance growth

The lifting of international sanctions on Iran will boost the country's economy and fuel the growth of Islamic finance, Standard & Poor's Ratings Services said on Tuesday.
For Iran - one of the largest players in the Islamic finance industry contributing to around 40 per cent of global Islamic banking assets - the lifting of sanctions could bring about its eventual economic rebound and help boost Islamic finance.
The ratings agency said in a report that if Iran meets all deliverables, sanctions may start to lift in the first half of 2016.
The World Bank estimates this would help Iran's oil exports rebound to pre-2012 sanction levels within eight to 12 months. Sanctions lifting could also restore Iran's access to the global financial markets. Under this scenario, Iran's GDP growth would hover around six per cent annually in fiscals 2017 and 2018 according to market estimates, compared with less than one per cent in 2015.
"We expect that accessing the sukuk market might help Iran raise funding for its projects and be seen by global Islamic investors as a diversification opportunity. The Islamic financial market could also benefit from volume effects as post-sanction investment projects are reportedly high. This could support market growth in the medium term," S&P said.
The flipside of sanction removals is the possible drop in oil prices. This could intensify pressure on some oil exporting countries that rely heavily on oil revenues, in turn curbing their spending and banking system growth, the report said.
Tehran is aiming to ramp up oil production despite a supply glut that has sent prices down drastically.
Iran, which has the fourth-biggest oil reserves in the world and is pumping about 2.8 million barrels a day, is expected to add between 600,000 and one million barrels to output once sanctions are lifted.
But Iranian authorities are much more bullish and aim for an increase of close to 1.5 million barrels by the end of 2016, taking daily production to 4.2 million.
For banks in the UAE and Lebanon, the opening up of the Iranian economy bodes well with Tehran lining up $100 billion worth of energy deals to kick-start its economy.
Potentially, Western, Chinese and Indian banks also will likely be attracted to Iran's diversified economy and significant trade flows, according to Moody's.
(Khaleej Times / 16 September 2015)
---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Latest Posts

Upcoming Events on Islamic Finance, Wealth Management, Business, Management, Motivational

Alfalah Consulting's facebook

NOTICE

Alfalah Consulting is NOT providing any kind of loan to finance project etc and asking for a fee. If you've received any email claiming to be from Alfalah Consulting, offering loan to you, please ignore it or inform us for further actions. Our official email is info@alfalahconsulting.com. If you've received an email from afalah.consulting@gmail.com, that's NOT from us. Be cautious!