Latest news with #AlNatoor
Hi Dubai
07-04-2025
- Business
- Hi Dubai
UAE's Bonds and Sukuk Reach $309.4 Billion in Q1 2025
The UAE's bond and Sukuk market experienced notable growth in Q1 2025, with outstanding debt soaring to $309.4 billion, a rise of 8.3% compared to the same period last year, according to Fitch Ratings. Bashar Al Natoor, Managing Director and Global Head of Islamic Finance at Fitch Ratings, emphasized the continued expansion of the UAE's debt markets. This surge reflects the nation's growing financial ecosystem and its strategic role in the global Sukuk market. As of Q1 2025, Sukuk accounted for 20.2% of the UAE's total debt, with the remainder being conventional bonds. New Sukuk issuances in the UAE reached $4.9 billion in Q1 2025, doubling from the previous quarter, while bond issuances amounted to $24.1 billion. Al Natoor also highlighted the UAE's significant position globally, with the country holding 6.5% of total global Sukuk as of Q1 2025, ranking fourth worldwide after Malaysia, Saudi Arabia, and Indonesia. In addition, the UAE remains one of the largest issuers of US dollar-denominated debt in emerging markets, holding a 7% share of the global market in Q1 2025, behind only Saudi Arabia, Brazil, and Mexico. The UAE is also making strides in Environmental, Social, and Governance (ESG) debt, ranking third among emerging markets (excluding China) for ESG-related Sukuk and bonds, trailing Türkiye and the Philippines. Regionally, the value of outstanding GCC debt reached $1.03 trillion by the end of Q1 2025, with the UAE holding the second-largest share at 30%, and a notable 15.6% share in Sukuk. News Source: Emirates News Agency
Zawya
07-04-2025
- Business
- Zawya
UAE's outstanding bonds, Sukuk reach $309.4bln by Q1 2025: Fitch
DUBAI - UAE's outstanding bonds and Sukuk surged to $309.4 billion by Q1 2025, marking an 8.3 percent year-on-year increase, according to Fitch Ratings. Bashar Al Natoor, Managing Director and the Global Head of Fitch Ratings' Islamic Finance Group, told the Emirates News Agency (WAM), that the UAE's debt markets continue to witness strong growth. He explained that this growth reflects the country's expanding financial ecosystem and strategic position in the Sukuk market. Sukuk accounted for 20.2 percent of the UAE's total outstanding debt, while the remainder was conventional bonds. Meanwhile, new Sukuk issuance in the UAE amounted to $4.9 billion in Q1 2025—double the value issued in Q4 2024. Bond issuances stood at $24.1 billion. Al Natoor noted that the UAE remains a key global player in the Sukuk market, accounting for 6.5 percent of total global outstanding Sukuk as of Q1 2025, ranking fourth worldwide after Malaysia, Saudi Arabia, and Indonesia. He explained that the UAE is one of the largest US dollar debt issuers in emerging markets (excluding China), with a share of 7 percent of the total in Q1 2025, only behind Saudi Arabia, Brazil and Mexico. Regarding ESG-related (Environmental, Social, and Governance) bonds and Sukuk, the UAE ranked third among emerging markets (excluding China) in Q1 2025, following Türkiye and the Philippines. Regionally, he noted that the value of outstanding debt (bonds and Sukuk) across the GCC reached $1.03 trillion by the end of Q1 2025, with the UAE holding the second-largest share at 30 percent. The UAE also held the second-largest share of Sukuk in the Gulf at 15.6 percent of the total.
Bloomberg
10-03-2025
- Business
- Bloomberg
Fitch Cautions on Rule That Could Make Sukuk Similar to Equity
A proposed change to the regime governing global sukuk risks transforming the asset class into an equity-like instrument that can't be assessed by credit-rating companies, according to Bashar Al Natoor, head of Islamic finance at Fitch Ratings. The so-called AAOIFI Standard 62, aimed at strengthening compliance with Shariah, or Islamic religious laws, would require sukuk issuers to transfer ownership of the underlying assets to the investors. But sukuk-issuing nations can potentially adopt less disruptive ways to implement the rule that would leave the securities ratable, Al Natoor said in an interview.
Zawya
07-02-2025
- Business
- Zawya
UAE's debt capital market on track to reach $400bln amid favourable policies: Fitch
The UAE's debt capital market (DCM) is on track to grow to $400 billion in the coming years, Fitch Ratings said. The growth will be fueled by funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the Dirham Monetary Framework. 'After surpassing $300 billion and up just over 10% from last year, the emirate's DCM is on track to reach $400 billion,' said Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings. The UAE is a key player in the global sukuk landscape, with 92% of its sukuk being investment-grade and nearly all of its sukuk issuers on stable outlooks. 'No defaults in 2024 highlight the market stability, supported by the evolving Dirham Monetary Framework and favourable funding conditions,' he added. Sukuk made up 20.8% of dollar issuances in 2024, followed by ESG issuance at 17.2%. The dirham's share of the DCM surged to 23% by 2024-end compared to 0.5% in 2020. 'The UAE's consolidated debt is stable. We expect UAE banks to continue being key debt issuers and investors,' Al Natoor added. However, challenges persist as the DCM investor base is mainly concentrated in banks. 'Dirham issuance by corporates and banks is rare. Many large corporates are starting to issue debt, but the funding culture remains bank-focused.' Sharia complexities, including AAOIFI Standard 62, pose risks for sukuk, Al Natoor said.
