Latest news with #BasharAlNatoor
New Straits Times
29-07-2025
- Business
- New Straits Times
Global ESG sukuk poised to top US$60bil by 2026
KUALA LUMPUR: Global environmental, social, and governance (ESG) sukuk is likely to surpass US$60 billion in outstanding value by the end of 2026, according to Fitch Ratings. The rating agency said the growth reflects its expanding role in funding sustainability initiatives, attracting a diverse investor base, and benefiting from ongoing regulatory reforms. It noted that just over 40 per cent of all emerging-market ESG US dollar debt issued in the first half of 2025 (1H25), excluding China, was in sukuk format, with the rest in bonds. However, Fitch Ratings expects ESG sukuk issuance to moderate in the third quarter of 2025 (3Q25) due to seasonal summer trends in key markets, mirroring broader sukuk market patterns, before rebounding in 4Q25. Its global head of Islamic Finance, Bashar Al Natoor, said Fitch-rated ESG sukuk has been resilient to the Middle East geopolitical conflict. "All issuers have Stable Outlooks, and almost all are investment-grade. There were no defaults. "ESG sukuk are now increasingly tapped by both Islamic and ESG-focused investors, supporting funding diversification and helping issuers meet their sustainability targets," he added. According to Fitch Ratings, over 10 per cent of global dollar sukuk outstanding are ESG-linked. Global ESG sukuk increased by just over 12 per cent year-on-year (YoY) in 1H25 to about US$50 billion equivalent outstanding. The Gulf Cooperation Council (GCC) accounted for over half of this, led by Saudi Arabia and the UAE, while Malaysia and Indonesia together represented 40 per cent. Fitch Ratings covers about three-quarters of the global US dollar ESG sukuk market, the vast majority of which is senior unsecured, with around one per cent being subordinated. Key listing venues for dollar-denominated ESG sukuk include the stock exchanges in Frankfurt, London, Stuttgart, and Nasdaq Dubai. Issuer diversity increased notably in the second quarter of 2025, with examples such as UAE-based Omniyat Holdings Ltd's debut green sukuk, rated 'BB-', and Pakistan's first rupee-denominated sovereign green sukuk, which was unrated. Meanwhile, Saudi Arabia's Capital Market Authority introduced new guidelines for green, social, sustainability, and sustainability-linked debt instruments. However, it said geopolitical risks, evolving Shariah interpretations, oil price volatility, and greenwashing concerns may weigh on future ESG sukuk issuance.
Zawya
14-07-2025
- Business
- Zawya
Global sukuk issuance to dip in Q3 after $1 trillion milestone
Global sukuk issuance is likely to slow in the third qaurter with seasonal summer trends in key issuing markets, following a strong first half where global volumes surpassed the $1 trillion milestone for the first time, according to Fitch Ratings. The sukuk market's credit profile 'remained broadly robust, despite a period of geopolitical conflict in the Middle East, as 80% of Fitch-rated sukuk are investment grade and 87% of issuers have a Stable Outlook, stated Fitch in the 'Global Sukuk Monitor 1H25' report. On the issuance side, after a brief pause, sukuk rebounded swiftly as tensions eased,' says Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings. Issuance is likely to pick up again in 4Q25, 'on rising Islamic investor demand, funding diversification, refinancing, budget needs and government support for Islamic finance growth.' The Accounting and Auditing Organization for Islamic Financial Institutions is revising the draft shariah standard no. 62, with few regulators already addressing the sukuk asset registration requirements. The UAE central bank's Higher Sharia Authority (HSA) issued a resolution on the sale of rights over tangible assets with no requirement to register, which is likely to maintain market stability. Ras Al Khaimah's recently issued sukuk (rated 'A+') had a registration exemption for real-estate ijara assets by decree, as promulgated by the HSA, stated the top ratings agency. According to Fitch, sukuk penetration in emerging markets (EM) is rising, at over 16.5% of all EM US dollar debt issued in Q2 (excluding China; versus 2024: 12%). Recent landmark issuance included the largest-ever 'AA' rated corporate sukuk issued by ADNOC Murban RSC, Egypt returning to the sukuk market (rated 'B'), and Jordan's debut dollar sovereign sukuk (sukuk unrated). GCC Islamic and conventional banks remain crucial as both issuers and investors, with ample liquidity. A few UAE banks started offering fractional sukuk, enabling greater retail participation. Lower oil prices (2025F: $70/bbl; 2026F: $65/bbl) may encourage GCC sukuk and bond issuance. The anticipated single US Federal Reserve rate cut in 4Q25 (2025F: 4.25%; 2026F: 3.5%) could boost issuance. However, risks remain such as new sharia requirements, geopolitical escalations and oil-price shocks. -TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Daily Tribune
17-04-2025
- Business
- Daily Tribune
Saudi asset management industry exceeds SAR 1 Trillion: Fitch
TDT | agencies The Saudi Arabian asset management industry grew by over 20% in 2024, exceeding SAR1 trillion (USD266 billion) assets under management (AUM) for the first time, Fitch Ratings says. The industry is likely to attract steady inflows in 2025– 2026, with AUM set to surpass SAR1.3 trillion (USD350 billion), due to the growing investor base, favourable demographics, ongoing reforms, deepening capital markets, and digital transformation moves. However, the market is not immune from global volatil- ities, such as those caused by the US government's tariff rises on 2 April. Oil price changes are amongst the key factors that could affect the industry. 'Saudi Arabia's asset management industry is the largest in the GCC, with AUM having crossed SAR1 trillion, and further growth expected', said Bashar Al Natoor, Global Head of Islamic Finance at Fitch. 'Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products.' S a u d i bank-affiliated asset managers held nearly two thirds of industry revenue. However, international competition is rising. BlackRock, Goldman Sachs, Morgan Stanley, Citigroup, and Mizuho Bank received regulato- r y approval to set up their regional headquarters in Saudi Arabia in 2024. The government is aiming for the industry AUM to reach 40% of the GDP by 2030 (2024: 26%). About half of the industry's AUM were in private funds, followed by discretionary portfolio management (DPM), and public funds. The private funds' AUM are split mainly between real estate and equities. About half of AUM under DPM are in local shares. Public funds' AUM are split between money market funds, equities, REITs, and debt instruments. The combined capitalisation of GCC listed equity markets crossed USD4 trillion at end-2024, dominated by the Saudi Exchange. Foreign investor ownership in Saudi stocks reached 10.8% in 9M24 (2023: 12.8%). About 63% of the Saudi debt capital market is in sukuk, with almost all Fitch-rated Saudi sukuk being investment-grade.
Zawya
17-04-2025
- Business
- Zawya
Saudi asset management industry tops $266bln, says Fitch
The Saudi Arabian asset management industry grew by over 20% in 2024, exceeding SAR1 trillion ($266 billion) assets under management (AUM) for the first time, said Fitch Ratings. The industry is likely to attract steady inflows in 2025–2026, with AUM set to surpass SAR1.3 trillion ($350 billion), due to the growing investor base, favourable demographics, ongoing reforms, deepening capital markets, and digital transformation moves. However, the market is not immune from global volatilities, such as those caused by the US government's tariff rises on 2 April. Oil price changes are amongst the key factors that could affect the industry. "Saudi Arabia's asset management industry is the largest in the GCC, with AUM having crossed SAR1 trillion, and further growth expected," said Bashar Al Natoor, the Global Head of Islamic Finance at Fitch. "Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products," he stated. Saudi bank-affiliated asset managers held nearly two thirds of industry revenue. However, international competition is rising. BlackRock, Goldman Sachs, Morgan Stanley, Citigroup, and Mizuho Bank received regulatory approval to set up their regional headquarters in Saudi Arabia in 2024. The government is aiming for the industry AUM to reach 40% of the GDP by 2030 (2024: 26%), stated Fitch in its report. About half of the industry's AUM were in private funds, followed by discretionary portfolio management (DPM), and public funds. The private funds' AUM are split mainly between real estate and equities. About half of AUM under DPM are in local shares. Public funds' AUM are split between money market funds, equities, REITs, and debt instruments, it stated. The combined capitalisation of GCC listed equity markets crossed $4 trillion at end-2024, dominated by the Saudi Exchange. Foreign investor ownership in Saudi stocks reached 10.8% in 9M24 (2023: 12.8%). About 63% of the Saudi debt capital market is in sukuk, with almost all Fitch-rated Saudi sukuk being investment-grade.- TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
16-04-2025
- Business
- Trade Arabia
Saudi asset management industry tops SAR1 trillion, says Fitch
The Saudi Arabian asset management industry grew by over 20% in 2024, exceeding SAR1 trillion ($266 billion) assets under management (AUM) for the first time, said Fitch Ratings. The industry is likely to attract steady inflows in 2025–2026, with AUM set to surpass SAR1.3 trillion ($350 billion), due to the growing investor base, favourable demographics, ongoing reforms, deepening capital markets, and digital transformation moves. However, the market is not immune from global volatilities, such as those caused by the US government's tariff rises on 2 April. Oil price changes are amongst the key factors that could affect the industry. "Saudi Arabia's asset management industry is the largest in the GCC, with AUM having crossed SAR1 trillion, and further growth expected," said Bashar Al Natoor, the Global Head of Islamic Finance at Fitch. "Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products," he stated. Saudi bank-affiliated asset managers held nearly two thirds of industry revenue. However, international competition is rising. BlackRock, Goldman Sachs, Morgan Stanley, Citigroup, and Mizuho Bank received regulatory approval to set up their regional headquarters in Saudi Arabia in 2024. The government is aiming for the industry AUM to reach 40% of the GDP by 2030 (2024: 26%), stated Fitch in its report. About half of the industry's AUM were in private funds, followed by discretionary portfolio management (DPM), and public funds. The private funds' AUM are split mainly between real estate and equities. About half of AUM under DPM are in local shares. Public funds' AUM are split between money market funds, equities, REITs, and debt instruments, it stated. The combined capitalisation of GCC listed equity markets crossed $4 trillion at end-2024, dominated by the Saudi Exchange.
