Moody's Ratings upgrades PNC Investments CFR to Ba2
This upgrade reflects PNCI's continued strong sales, robust construction activity, and significant improvement in credit metrics. In 2024, revenue rose to Dh8.9 billion from Dh6.5 billion in the previous year. Moody's-adjusted debt to EBITDA improved to 1.7x from 2.7x in 2024 and is expected to further strengthen to 0.9x in 2025.
As the second largest privately held residential developer in Dubai by sales, Sobha Realty continues to demonstrate the strength of its Backward Integration Model, allowing full control from design to delivery. This, coupled with a strong backlog of more than Dh23 billion, positions the company to navigate evolving market dynamics effectively while delivering on its commitment to excellence and timely project delivery.
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Zawya
07-08-2025
- Zawya
Oman's credit rating upgrade heralds numerous benefits
Recently, Moody's upgraded the Sultanate of Oman's rating from Ba1 to Baa3, while revising the outlook to stable. The ratings agency attributed the upgrade to the improvement in Oman's public debt indicators and the strength of its financial position, along with the efficiency of its financial management, which has enhanced its ability to withstand shocks, especially in light of the decline in average oil prices and production. The issuer commentary cites financial policies and provisions, as well as the measures taken in many aspects related to the Omani economy, economic diversification policy, and private sector stimulation. Most of us know that an uptick in a country's credit rating contributes to strengthening the stability of its domestic economy, reducing the cost of borrowing, and stimulating foreign investment, especially if the country is free of bureaucracy in its daily operations. An improved rating also increases the ability to finance development and social projects, enhances the country's competitiveness, and contributes to improving the quality of life for citizens. Moody's commentary also points to Oman's government efforts, explaining that they have achieved positive results, particularly with regard to public spending. Government spending declined to 29% of GDP, compared to an average of more than 41% during the period from 2016 to 2020. Debt also declined from 37.5% of GDP at the end of 2023 to 35.5% at the end of 2024 and is expected to continue declining in the coming years. The Moody's report expects the Omani economy to witness further improvement in the coming years and accelerating growth in the non-oil sector and reduce the primary non-oil deficit. Over the past few years, the government has taken numerous measures to diversify sources of income, which can enhance long-term financial stability by working to increase the contribution of non-oil revenues to the general budget, supporting plans to develop the green hydrogen sector and related industries and expanding liquefied natural gas (LNG) production by 2030. Raising Oman's credit rating could have significant positive impacts on the economy, finances and society as a whole. In the coming years, Oman can reap many benefits from this, particularly in terms of improving its ability to attract foreign investment. A good credit rating reflects the stability of the economy and its ability to meet its financial obligations, making Oman a more attractive destination for foreign investors who can contribute to the development of new sectors such as technology, tourism, industry and others. A ratings upgrade can also reduce borrowing costs, enabling the government and companies to borrow at lower costs. Some analysts believe that a rating upgrade would enable the Omani government to issue international or local bonds at lower costs, helping finance important national projects without significantly impacting the general budget. It would contribute to strengthening economic stability, improve the business environment and encourage economic expansion to implement development and social programmes by financing projects to improve education, healthcare and housing, which would positively impact citizens' standard of living. Oman seeks to achieve sustainable economic diversification away from oil and gas. The country is working to accelerate transition to a more sustainable and competitive economy, facilitate negotiations with its international trading partners and enhance its image in global markets. It will also support public-private partnership projects, which will contribute to stimulating social growth. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Arabian Post
31-07-2025
- Arabian Post
Gulf ESG Sukuk Surge Strengthens Regional Fiscal Influence
Gulf nations now account for over half of global environmental, social, and governance sukuk issuances in the first half of 2025, underscoring their growing leadership in sustainable Islamic finance. Sukuk linked to ESG objectives saw a 12 per cent rise to approximately $50 billion outstanding globally in H1 2025, with Gulf Cooperation Council countries contributing the majority of this volume. Saudi Arabia and the UAE emerged as principal issuers, driving much of the growth. Issuances denominated in foreign currencies rose to $41.4 billion, an 8.94 per cent year-on-year increase, as institutional demand from both regional and international investors firmed further. Saudi Arabia alone accounted for nearly 39 per cent of the total foreign currency sukuk volume in H1, signaling its strategic commitment to funding Vision 2030 priorities through sustainable Islamic financing. The scale and number of ESG sukuk issued by Gulf issuers—including sovereigns, banks, and corporates—mark them as dominant players in the global market. ADVERTISEMENT Fitch Ratings expects the global ESG sukuk market to reach $60 billion in outstanding volume by end‑2026. GCC countries—led by Saudi Arabia and the UAE—continue to serve as hubs of innovation and scale in this segment. Emerging issuers include Malaysia, Indonesia, and Pakistan, though they collectively accounted for under half of the total in H1. Strong demand for ESG sukuk is supported by rising interest in sustainable finance instruments that align with national decarbonisation strategies and renewable energy commitments. Instruments such as green and sustainability‑linked sukuk are gaining traction, offering issuers access to lower-cost capital and ESG-sensitive international pools. Moody's had noted earlier that GCC economies accounted for over 80 per cent of global sustainable sukuk issuance in H1 2024, with Saudi Arabia and the UAE at the forefront. Even as sustainable debt issuance globally slowed in other formats, ESG sukuk have outperformed conventional sukuk growth, highlighting the appeal of Shariah‑compliant, transparency‑oriented instruments. Analysts expect sustained momentum through the year, with issuance activity partly driven by issuers seeking to lock in favourable foreign currency funding amid monetary policy uncertainties. Attention to regulatory developments is intensifying. The forthcoming implementation of Shariah Standard 62 by the Accounting and Auditing Organization for Islamic Financial Institutions is poised to require legal transfer of underlying assets to investors—transforming sukuk structures toward equity‑like formats. Rating agencies warn this could deter fixed‑income investors, increase structuring complexity and raise costs, particularly in Saudi Arabia and the UAE, potentially fragmenting the market unless flexibility and jurisdictional adaptation are built into the standard. Financial institutions across the GCC are responding by accelerating ESG sukuk programmes and adopting sustainable finance frameworks. Dubai's Nasdaq serves as the leading listing venue globally, hosting some 35 per cent of outstanding ESG sukuk by end‑2024. Banking groups such as FAB and ADIB have originated ESG‑aligned Islamic financings—for example supporting renewable energy and decarbonisation projects in line with national and international sustainability targets. Issuers in the Gulf appear determined to exceed expectations through H2 2025, capitalising on robust investor appetite, sovereign sustainability drives, and regulatory frameworks conducive to ESG-aligned debt. Market watchers anticipate further acceleration in sustainable Islamic finance, positioned at the intersection of capital efficiency, Shariah compliance, and global ESG investment flows.
Gulf Today
29-07-2025
- Gulf Today
Arada completes issuance of $450 million Sukuk
Arada Developments, rated B1 by Moody's and B+ by Fitch, has successfully completed the issuance of a $450 million Sukuk, which has been listed on the London Stock Exchange and the Nasdaq Dubai. The five-year fixed rate RegS Sukuk issuance, rated BB- by Fitch and B1 by Moody's, was priced with a coupon of 7.150 per cent, tightening 47.5bps- 60bps from the initial price guidance of 7.625 per cent-7.750 per cent for a spread of 317 bps over US Treasuries, for the tightest reoffer yield ever achieved by Arada. The proceeds of the issuance will be used for a tender offer of up to US$100 million on Arada's existing Sukuk maturing 2027, with the balance for general corporate purposes. The Sukuk issuance saw strong demand from both regional and international investors with a subscription order book peaking above $2 billion (excluding Joint Lead Managers), equivalent to over four times the offer size. Prince Khaled Bin Alwaleed Bin Talal, Executive Vice Chairman of Arada, said, "Our latest successful return to the global markets reflects once again the trust being placed by regional and international investors in Arada's track record, robust financial position and growth prospects. This issuance serves as a platform of our next phase of growth as we continue target growth opportunities both at home in the UAE and abroad.' Investor interest for the Sukuk was diversified geographically, coming from Europe, the Middle East and Asia. The investors for this issuance include banks, private banks, asset and fund managers, and hedge funds. The Joint Global Coordinators for the Sukuk were Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered Bank, while Arab Bank, Arqaam Capital, Bank ABC, RAK Bank, Sharjah Islamic Bank and Warba Bank acted as Joint Lead Managers and Bookrunners. Since its launch in 2017, Arada has launched nine successful projects in both Sharjah and Dubai, and has a pipeline of existing and future projects in the UAE and Australia valued at over DhsD90 billion. In total, Arada has sold over 17,000 units since inception, valued at over Dhs29 billion, with over 10,000 units completed. WAM
