Latest news with #Dh660
Al Etihad
02-06-2025
- Business
- Al Etihad
Al Seer Marine and BGN affiliate launch JV to meet growing LPG demand
2 June 2025 10:09 ABU DHABI (ALETIHAD)Al Seer Marine, a subsidiary of International Holding Company (IHC), has announced the launch of a joint venture (JV) with B International Shipping & Logistics—an affiliate of energy trader BGN — to strengthen its footprint in the liquefied petroleum gas (LPG) logistics Seer Marine, a listed company on the Abu Dhabi Securities Exchange (ADX) with a market cap of Dh3.55 billion, posted a statement announcing the JV on the ADX's website. The new joint venture, named ASBI Shipping FZCO, aims to own and operate mid-sized LPG and product tankers, targeting growing demand in regional and infrastructure-constrained part of its initial operations, ASBI has acquired two 22,000 cbm semi-refrigerated LPG tankers, Alkaid and Alcor. The vessels are backed by a 10-year charter agreement with BGN INT DMCC, a subsidiary of BGN that trades over 50 million metric tonnes of commodities annually. The deal is expected to generate Dh660 million ($180 million) in revenue through on the partnership, Guy Neivens, CEO of Al Seer Marine, said, 'The global energy landscape is evolving rapidly, reshaping how countries manage their supply chains. This transformation is driving increased demand for smaller, more flexible LPG vessels that can efficiently serve regional hubs and infrastructure-constrained ports.'To support the vessel acquisition, Abu Dhabi Commercial Bank has extended Dh210 million ($57.2 million) in senior secured term financing. The seven-year facility is secured by the vessels and their associated cash flows, underlining institutional confidence in the JV's commercial to Rüya Bayegan, CEO of BGN Group,'Our charter with ASBI aligns with BGN's focus on securing transition fuel supply chains. Smaller vessels are indispensable for ports lacking VLGC infrastructure.'The vessels, equipped with semi-refrigerated systems and high-standard safety features, are designed for carrying propane, butane, ammonia, and other petrochemical cargoes. These mid-size carriers are particularly suited to serve emerging hubs across Africa, South Asia, and Southeast Asia, where 30% of LPG shipments now rely on sub-30,000 cbm Turgut, Director at B International Shipping & Logistics, highlighted the demand outlook, 'We see this as a unique market window and intend to grow ASBI's fleet to meet regional demand and become a global leader in this specialised segment.' The formation of ASBI Shipping reflects Al Seer Marine's capital-efficient expansion model, aimed at scaling through partnerships and capturing market share in high-demand maritime sectors.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
The UAE's Islamic finance and halal strategy could boost the industry
The UAE cabinet's recent approval of the strategy for Islamic finance and halal industry is likely boost the industry, a top agency said. According to a report by Fitch Ratings, the UAE Islamic finance industry is long-established and it is expected to continue to expand in the short-to-medium term on the back of significant bottom-up and top-down demand and regulatory initiatives to further deepen Islamic finance ecosystem and infrastructure. 'Details of the new strategy are yet to be revealed, and it is to be seen what steps the government will take to achieve its targets and what challenges it might face. Fitch will continue to monitor these developments,' the agency said in a report. According to the Cabinet decision, the UAE will aim to more than double the country's Islamic banking assets to Dh2.56 trillion ($697.5 billion) from Dh986 billion ($268.4 billion), local sukuk issuances to Dh660 billion ($179.8 billion) and international sukuk listed in the UAE to Dh395 billion ($107.5 billion) by 2031, among other objectives. The cabinet approved the formation of a committee chaired by the central bank's (CBUAE) governor to implement the strategy. Islamic banks' yearly assets growth outpaced conventional banks, according to the CBUAE, with continuation expected over the medium term. 'However, these ambitious goals could face increasing competition from large conventional banks who benefit from strong government links. The evolving and additional sharia-compliance requirements could pose risks for the Islamic finance industry and sukuk issuance trends,' Fitch said. The UAE Islamic finance industry is estimated at over $285 billion at end of the first quarter of 2025. Fitch rated $28 billion of UAE sukuk at the end of the first quarter, 92.1 per cent of which were investment grade. About 39.2 per cent of sukuk issuers are in the 'A' category, followed by 34.5 per cent in the 'BBB' category, 18.5 per cent in the 'AA' category, with the rest in the 'BB' and 'B' categories; all issuers have stable outlooks. 'About 50 per cent of sukuk issuers are financial Institutions, but diversity is rising with the remaining 50 per cent split between corporates, infrastructure and project finance, international public finance and sovereign,' Fitch said. Fitch rates five investment-grade Islamic banks in the UAE (60 per cent in the 'A' category; 40 per cent in the 'BBB' category), along with one takaful company (Abu Dhabi National Takaful Company; A-/Stable) and one Shariah-compliant corporate (Emirates REIT BB-/Stable). No rated Islamic finance issuer or sukuk defaulted in 2024 and in end of the first quarter of 2025, data showed. The UAE is a pivotal player in the global sukuk market, with a 6.5 per cent share of the global sukuk outstanding as of the end of the first quarter, placing it fourth globally (all currencies). Also, the UAE is the fourth-largest US dollar debt issuers in emerging markets (excluding China), and the third-largest issuer of ESG bonds and sukuk in the end of the first quarter. 'We expect Nasdaq Dubai to remain among the top listing centres for dollar sukuk globally, with the venue listing more sukuk than conventional bonds and equities combined in 2024,' Fitch said in its report. The sukuk share of UAE debt capital market (DCM) outstanding reached about 18 per cent in the 25 (2024: 19.9 per cent), while sukuk were close to half of all dollar issuance (1Q24: 40 per cent). Sukuk issuance in all currencies in the 4M25 grew 28 per cent yoy to $6.5 billion, while conventional bonds were up 6.7 per cent. In April 2025, following the market volatilities exacerbated by the US administration's tariff rise, most UAE issuers accessed the dollar DCM mainly through sukuk rather than conventional bonds. There are not yet any Islamic alternatives to the dirham M-Bills, but the CBUAE has started to develop a sustainable Islamic M-Bills programme. The UAE's Islamic banks also have a significant role in the country's financial landscape, with over 17 per cent of total banking system assets at the end of January 2025. 'The Higher Shariah Authority of the CBUAE aims to harmonise and standardise the practices of Islamic financial institutions, and regularly issues regulations and guidelines,' Fitch said.
Al Etihad
12-05-2025
- Business
- Al Etihad
UAE's new Islamic finance strategy to spur growth, strengthen banking infrastructure –Fitch
13 May 2025 01:02 KHALED AL KHAWALDEH (ABU DHABI)The UAE's Islamic finance and halal economy is poised for significant growth following the recent approval of a national strategy aimed at positioning the country as a global leader in Islamic financial services and halal to a new analysis by Fitch Ratings, the UAE's ambitious targets, if achieved, could more than double the value of Islamic banking assets and sukuk issuance over the next six years, solidifying the nation's leadership in these key strategy, approved by the UAE Cabinet on May 6, sets out a vision to expand the Islamic financial ecosystem and boost the export of halal products. Among its headline objectives is increasing Islamic banking assets from Dh986 billion to Dh2.56 trillion by 2031. It also aims to grow local sukuk issuances to Dh660 billion and international sukuk listings in the UAE to Dh395 billion.'The UAE's Islamic finance industry is long established, and it is expected to continue to expand in the short-to-medium term on the back of significant bottom-up and top-down demand and regulatory initiatives to further deepen the Islamic finance ecosystem and infrastructure,' the Fitch report said.'Details of the new strategy are yet to be revealed, and it is yet to be seen what steps the government will take to achieve its targets and what challenges it might face.'According to Fitch, the UAE's Islamic finance sector is already valued at over $285 billion as of the first quarter of 2025. Islamic banks in the country account for more than 17% of total banking system assets, with their annual growth rate outpacing that of conventional banks, according to CBUAE data. The nation also holds a 6.5% share of global sukuk issuance, ranking fourth cautioned, however, that the UAE could face increasing competition from large conventional banks and global sukuk markets. The report said that while the UAE's targets are ambitious and achievable, execution risks remained, including those linked with evolving Sharia compliance requirements and market competition from conventional banks with strong government report also highlighted the UAE's growing dominance in the sukuk market, noting that 92.1% of Fitch-rated UAE sukuk are investment grade, with nearly 40% in the 'A' category. It also noted the increasing diversification of the market with financial institutions accounting for half of all issuers, and the rest spread across corporates, infrastructure projects, and sovereign said sukuk issuance in the UAE reached $6.5 billion in the first four months of 2025, representing a 28% year-on-year increase, compared to a 6.7% rise in conventional Halal IndustryAlongside the financial sector push, the UAE strategy emphasises strengthening its halal production and export capabilities. This includes boosting domestic halal manufacturing to tap into the global Islamic consumer market, which is projected to exceed $3 trillion in the coming years. The UAE aims to build on its reputation as a regional hub for halal products, leveraging its advanced logistics infrastructure and regulatory frameworks to enhance the competitiveness of Emirati-made halal goods on the global stage.
The National
29-01-2025
- Business
- The National
UAE Central Bank follows Fed in keeping interest rates steady
The UAE Central Bank kept its benchmark interest rate unchanged on Wednesday, shadowing the US Federal Reserve's move which held its policy steady to counter persistent inflation and expansionary economic policies of the administration of US President Donald Trump. In its first meeting since Mr Trump took control of the White House for his second stint as president of the country with the world's largest economy, the Federal Open Market Committee kept the borrowing rates unchanged at 4.25 per cent to 4.50 per cent range. After cutting the interest rate a full percentage point last year, Fed chairman Jerome Powell indicated that the US central bank would probably wait and watch markets before scaling back rates to boost the economy. The FOMC said in a statement that inflation remains "somewhat elevated" while the nation's unemployment rate "has stabilised at a low level in recent months". Most central banks in the GCC follow the Fed's policy rate moves due to their currencies being pegged to the US dollar, with Kuwait the only exception in the six-member economic bloc as its dinar is linked to several currencies. The CBUAE kept its base rate for the overnight deposit facility at 4.40 per cent, it said in a statement on Wednesday. It has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the base rate for all standing credit facilities. The base rate signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE, the banking regulator said. UAE retail investors are closely assessing how the latest interest rate decision will affect their portfolios. Recent data from digital trading and investment platform eToro revealed that 57 per cent of UAE retail investors factor interest rate changes into their investment strategies, underscoring the significant influence of monetary policy on market sentiment. "Investors are in a tug-of-war between the impacts of interest rate decisions and corporate earnings, both of which play significant roles in shaping market direction," said George Naddaf, managing director for Middle East and North Africa at eToro. The UAE economy, which has maintained a robust growth momentum since the Covid-19 pandemic-driven slowdown, grew by 3.6 per cent annually in the first half of last year driven by the non-oil sector. The country's real gross domestic product at constant prices rose to Dh879.6 billion ($239.5 billion) for the January-June period, while non-oil GDP increased by 4.4 per cent annually to reach Dh660 billion, contributing 75 per cent to the total, the Ministry of Economy said in December. The Central Bank estimates the UAE's economy to have grown by 4 per cent last year and expects the pace of economic expansion to accelerate to 4.5 per cent in 2025. The non-oil economy which is projected to have expanded by 4.9 per cent last year is expected to remain steady at 5 per cent growth this year, the CBUAE said in its fourth quarter 2024 review. The Central Bank also revised its 2024 estimate for UAE inflation downwards to 1.8 per cent from 2.2 per cent and said it expects inflation to reach about 2 per cent, 'driven mainly by non-tradable components of the consumer basket, partially offset by moderating energy prices'.
