Latest news with #FitchRatings'
Business Recorder
7 days ago
- Business
- Business Recorder
Dubai's residential property prices expected to fall by 15%: Fitch Ratings
Dubai's residential real estate prices will face a 'moderate correction' in the second half of the year and in 2026, and could fall by as much as 15%, according to Fitch Ratings' new report. 'We expect prices will not fall more than 15% with banks and homebuilders in the UAE able to absorb the lower prices, which will protect them from rating downgrades,' the report said. Prices of residential units increased by about 60% between 2022 and the first quarter of 2025, the report said, with demand underpinned by immigration in the post-pandemic years coupled with the improved attractiveness of the Dubai property market for investors in a healthy economic environment. Dubai leads global luxury real estate with 147pc growth in five years: report This is against the backdrop of a record number of new property projects in 2023-2024, which are expected to release about 250,000 units, it added. The spike in deliveries is expected in 2026, when about 120,000 units are planned for handover, compared to only 30,000 in 2024 and 90,000 in 2025. The handover of new units will lead to a record increase in supply, Fitch said, and it estimates an average 16% increase in supply in 2025-2027, exceeding forecast population growth of around 5%. Dubai's luxury market sets new record for over $10-million home sales Meanwhile, the average residential rental yield declined by 30bp in the second half of 2024 and early 2025 - 'albeit to a still heathy level of 7.4%'. 'We expect higher supply will put a further pressure on rental yields,' it explained. It also noted that assets in prime locations will remain more resilient to a potential correction, given a different typical investor profile with generally longer holding periods and higher tolerance for price swings. Pakistanis are among the top five buyers of property in Dubai.
New Straits Times
21-05-2025
- Business
- New Straits Times
Islamic liquidity instruments advancing but remain fragmented: Fitch
KUALA LUMPUR: Islamic liquidity management instruments (ILMIs) are gaining traction across key Islamic finance markets such as the Gulf Cooperation Council (GCC) region and Malaysia. However, the sector remains fragmented due to differences in regulatory frameworks and interpretations of shariah principles, according to Fitch Ratings' Islamic Finance Survey 2025. The firm said Islamic financial institutions continue to face structural challenges in managing short-term liquidity, mainly due to the limited pool of compliant instruments and uneven market adoption. "The development of ILMI is crucial for the stability and growth of Islamic finance, as they enable institutions to meet short-term funding needs without compromising Sharia principles," it said. The report highlighted that cross-border transactions remain limited, with a lack of regulatory harmonisation and standardised instruments hindering wider acceptance. "Greater collaboration between regulators, standard-setting bodies and financial institutions is essential to improve standardisation and develop a more integrated Islamic liquidity framework," Fitch said. Still, it acknowledged ongoing efforts by national regulators and market players to expand the ILMI ecosystem. "The evolution of ILMIs is a necessary condition for enhancing the resilience of Islamic financial systems, particularly as the industry grows in complexity and scale," it added.
Ammon
10-05-2025
- Business
- Ammon
National economy demonstrates resilience, positive outturns
Ammon News - Jordan's economy continues to exhibit notable resilience and a series of favorable macroeconomic outturns, navigating regional geopolitical headwinds effectively. This performance is underpinned by sustained monetary and financial stability, a proactive public-private sector engagement model, and tangible progress in the execution of the Kingdom's Economic Modernisation Vision (EMV). The Kingdom's economic fortitude is reflected in Fitch Ratings' recent affirmation of Jordan's 'BB-' long-term foreign currency sovereign credit rating with a stable outlook, underscoring international confidence in its fiscal and monetary management. GDP expansion registered 2.5% in the preceding year and is forecast to accelerate to 2.7% in the current year, propelled by strengthening domestic and external demand. Monetary stability remains a cornerstone, evidenced by robust foreign exchange reserves held by the Central Bank, which exceeded USD 22.8 billion at end-April. This provides substantial import coverage for 8.8 months and anchors exchange rate stability. Inflationary pressures remained contained, with the consumer price index averaging a low 2.0% in Q1 2025, and a projected full-year rate of approximately 2.2%. The external sector displayed dynamism. National export revenues advanced 8.1% year-over-year by end-February 2025, reaching JOD 1.309 billion, while aggregate exports, including re-exports, grew by 9.1% to JOD 1.449 billion. Tourism receipts were particularly buoyant, surging 8.9% YoY in Q1 2025 to JOD 1.217 billion. Expatriate remittances also contributed positively, increasing by 2% in the first two months of 2025 to USD 606 million. Domestic financial sector health was maintained, with customer deposits at commercial banks expanding 6.8% annually to JOD 47.4 billion by end-March, and credit facilities extended to the private sector growing by 3.9% to JOD 35.2 billion. Real sector activity indicators, such as port throughput at Aqaba, also showed strong performance, with incoming container volume up 22.5% YoY in the first four months of 2025. Furthermore, strategic asset accumulation continued, with Jordan's gold reserves increasing to 72.27 tonnes by end-Q1 2025. The Q1 2025 progress report for the EMV highlights ongoing initiatives to stimulate key sectors and achieve sustainable growth objectives. Economic analysts observe that these positive outturns demonstrate the economy's capacity to absorb shocks. Ahmad Majali, an economist, noted that while the full dividend of structural reforms accrues over the medium to long term, current growth is enabling Jordan to expand its fiscal space and manage budgetary pressures without resorting to severe contractionary measures. He emphasized the critical need for "sustained reform momentum and institutional continuity." Tareq Hijazi, Director General of the Jordanian Businessmen's Association, underscored that "Jordan's financial and monetary stability, coupled with demonstrable progress in structural reforms," has underpinned the consistent economic growth. He cited the record foreign reserves and positive assessments from international credit rating agencies like Fitch and Moody's (Ba3 stable) as key endorsements of the Kingdom's economic management. Both analysts concurred on the imperative to translate these macroeconomic gains into tangible improvements in socio-economic welfare and to bolster Jordan's structural competitiveness. Future policy, they suggested, should focus on deepening public-private partnerships for strategic investments and accelerating major development projects to achieve a higher growth trajectory, targeting above 3% in the medium term, thereby creating a more dynamic and sustainable economic environment. Petra
Al Etihad
07-04-2025
- Business
- Al Etihad
UAE's outstanding bonds, Sukuk reach $309.4 billion by Q1 2025: Fitch
7 Apr 2025 12:24 DUBAI (WAM) 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 Director and the Global Head of Fitch Ratings' Islamic Finance Group, Bashar Al Natoor, told (WAM) that the UAE's debt markets continue to witness strong 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 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 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 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 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 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.
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.
