Saudi Arabia

Banque Saudi Fransi Sets Up $2 Billion Islamic Bond Program

Banque Saudi Fransi arranged a $2 billion Islamic bond program as part of the Riyadh-based lender’s plans to mix up its sources of financing.
Islamic bond sales in Saudi Arabia, the world’s largest oil exporter, progressed to a record $6.55 billion so far this year as the government’s spending plan encourages companies to raise funds to invest.
Lead arrangers of the program were Citigroup Inc. (C), Credit Agricole, Deutsche Bank AG (DBK).

Allen & Overy advises on Saudi Electricity Company Sukuk

Allen & Overy, associated with local law firm Abdulaziz AlGasim Law Firm, advised Saudi Electricity Company (SEC), on the successful closure of its $1.75 billion dual-series Sukuk issue. The transaction represents SEC's first international Sukuk issuance and the largest international debt capital markets issuance to date out of Saudi Arabia.
The transaction was organized as a Sukuk al-ijara, with the two series of trust certificates launched by Saudi Electricity Global SUKUK Company.

Dar Al Arkan Confident Can Repay $1 Billion Sukuk, Arabian Says

Dar Al Arkan Real Estate Development Co. (ALARKAN) is certain that it will be able to repay a $1 billion Islamic bond maturing in July.
Saudi Arabia’s largest property developer has been developing cash reserves to repay the bond and can use assets and land as collateral to secure funding in the case of a shortfall.

UCITS tapped for Islamic funds distribution

Potential for marketing Islamic funds cross-border in the Asia-Pacific and Asean is starting to be seen through the UCITS (undertakings for collective investment in transferable securities) platform. Despite the fact that it has already been used in Europe, it's the first time that it's being used in this region.
On January 16 2012 Kuala Lumpur-based CIMB declared the launch of three Islamic UCITS funds designed for cross-border distribution in Asia.
These funds will be registered and allocated in seven jurisdictions including the UK, Switzerland, Germany, Saudi Arabia, Bahrain, the United Arab Emirates and Singapore.

Mideast bond sales soar to record as turmoil fades

Middle East bond sales are departing to a record start this year after political unrest that swept through some nations in 2011 decreased and as concern wanished that Europe’s debt crisis would disturb the request for regional debt.
Regional governments and companies raised $10.1bn in bonds in until now in 2012. A $4bn sukuk sale in Saudi Arabia, the biggest Arab economy, conducted a 55% rise in sales from the year-ago period.
Mohieddine Kronfol, Dubai-based chief investment officer for global sukuk and Middle East and North Africa fixed income at Franklin Templeton Investments, noted that they anticipate issuance to increase in the next 12 to 24 months, particularly with banks having to work harder to secure funding and extend credit to the private sector.

Nigeria/IDB: Nigeria to Host IDB Business Forum

The Islamic Development Bank (IDB) Group, based in Jeddah, Saudi Arabia, will be hosting a two-day business forum under the title “IDB Group-Nigeria Business Forum” in cooperation with the Federal Ministry of Finance of Nigeria and the Nigerian National Investment Promotion Commission (NIPC).
The objective of the Business Forum, planned to be held during the period from 15-16 March 2012, at the Transcorp Hilton Hotel, Abuja, is to make the Nigerian public mre sensitive and underline the products and services being provided by the IDB Group, including eligibility criteria, modes of financing, terms and conditions of financing, procurement, and other operational matters.

Nigeria to Host Islamic Development Bank Group Business Forum

The Islamic Development Bank (IsDB) Group, based in Jeddah, Saudi Arabia, will host a two day business forum under the title "IsDB Group-Nigeria Business Forum" in cooperation with the Federal Ministry of Finance of Nigeria and the Nigerian National Investment Promotion Commission (NIPC).
The event will be held during the period from 15-16 March 2012, at the Transcorp Hilton Hotel, Abuja. Its objective is to sensitize the Nigerian public and highlight the products and services being offered by the IsDB Group, including eligibility criteria, modes of financing, terms and conditions of financing, procurement, and other operational matters.

Saudi market eyes strong year after sukuk success

The success of Saudi Arabia’s first government-backed Islamic bond issue, and the dairy company Almarai’s planned sukuk, will set the stage for what will probably be one of the kingdom’s strongest years for Islamic bonds.
The Almarai bond plus the four as-yet-unannounced sukuk issues that HSBC is also preparing, would total “multiple billions” of Saudi riyals. Saudi Arabia’s government is encouraging the current expansion of the sukuk market.
According to Khalid Howladar, an analyst with Moody’s Investment in Dubai and Fahad al-Saif, the HSBC sukuk developer, by issuing government-backed sukuks, Saudi Arabia also is trying to expand the capacity of its capital markets.

Saudi Arabia's cenbank, CMA to coordinate supervision

Saudi Arabia's central bank will have a bigger role in the supervision of the country's financial sector as the kingdom weighs opening up its stock market to direct investments by foreigners.
The country's Capital Market Authority (CMA) signed a cooperation agreement with the central bank or Saudi Arabian Monetary Agency (SAMA) to coordinate supervision of the financial sector in order to improve its stability.
According to the agreement, the two entities will work together in the supervision of corporate governance, risk management measures, initial public offerings (IPOs), sukuk issuance and merger and acquisition regulations as well as the exchange of information.

Saudi Arabia Issues Its First Sovereign Islamic Bond

Saudi Arabia launched its first government-backed Islamic bond this week, for its aviation agency, establishing a benchmark for pricing of conventional and Islamic bond issues this year because of its size.
At $4 billion, it was the largest sukuk ever issued within the kingdom. The sukuk, guaranteed by the Saudi Ministry of Finance, was oversubscribed three times, and the Saudi General Authority for Civil Aviation will use the proceeds to finance the expansion of King Abdulaziz International Airport in Jidda.
The 10-year sukuk was sold in the domestic market, available only to Saudis.

Credit Agricole Has Two Mandates for Saudi Sukuk, Eedle Says

Credit Agricole SA (ACA) has two mandates to administer Islamic bond sales in Saudi Arabia. The statement was given by c the bank's global head of Islamic banking.
He added the fact that one of the issues will be denominated in U.S. dollars.

Saudi proposal for GCC Consumer Protection Council gets approval

A major GCC workshop on consumer protection has authorized Saudi Arabia’s proposal to set up Supreme Council for Consumer Protection in the GCC states. According to Dr. Nasser Al-Tuwaim, chairman of the Saudi Consumer Protection Association (CPA), the recommendations of the workshop, recently concluded in Doha, will be introduced to the next summit meeting of the Supreme Council of GCC leaders for approval.
Al-Tuwaim made the proposals while addressing the workshop on best practices to distinguish between original and counterfeit products that closed in Doha. The four-day event was set up by the Consumer Protection Department (CPD) under the Qatari Ministry of Business and Trade.

Malaysian global asset manager establishes first-in-class fund platform in Ireland

Ireland has conducted its first Malaysian-managed fund platform. The Central Bank of Ireland has approved the establishment of CIMB-Principal Islamic Asset Management (Ireland) Public Limited: a joint venture between Kuala Lumpur headquartered CIMB Group and Principal Global Investors.
The newly created joint venture will uphold a range of international Islamic funds on the platform from its Dublin domicile. Three equity UCITS are being registered: Islamic Global Emerging Markets Fund; Islamic Asia-Pacific ex-Japan Fund, and Islamic ASEAN Equity Fund.
Once registered the funds will be spread in the UK, Switzerland, Germany, Saudi Arabia, UAE, Bahrain and Singapore.

Islamic Finance in Africa to take off in 2012

Islamic finance banking options are progressively being seen as a viable alternative to traditional banking services in Africa and are growing to found not only the African Islamic community but all those searching for an interest-free banking alternative.
Key speakers from Nigeria, Malaysia and Saudi Arabia will join leading South African experts from ABSA, alBaraka Bank, KPMG and other financial institutions in the Islamic Finance Africa Conference that will take place on 21 - 24 February 2012 in South Africa.

Saudi private sector warms to ICIEC's export credit and political risk insurance services

Saudi Arabia is the largest beneficiary of the services of the Jeddah-based Islamic Corporation for the Insurance of Export Credits and Investment (ICIEC), the standalone export credit agency (ECA) of the Islamic Development Bank (IDB) Group.
The request for political risk insurance (PRI) is strongly increasing and PRI supply by members of the Bern Union is remaining strong and pricing is reflecting a buyer's market. It seems that in the MENA countries, this includes demand for Shariah-compliant PRI which has increased significantly.

Saudi Sukuk analysis

Saudi Arabia has the largest population, GDP and oil reserves in the GCC region and is strategically and militarily important on both a regional and global scale. Despite all this, unlike its neighbors the UAE or Bahrain, Saudi Arabia is not a culturally or economically-welcoming place for international business and as such much of Saudi Arabia’s non-oil related business is an internal market.
The country has given birth to some monumental Sukuk over the last few years, like the 20-year $2.1bn Saudi Basic Industries Corporation issue of 2007.
Most of the Sukuk issued have been for internal consumption.

Saudi Arabia to Issue Innovative Riyal Sukuk By Early 2012

It seems that Saudi Arabia is discussing with banks the issuing of a riyal-denominated Islamic bond. High-level talks are currently ongoing between the Saudi Arabian Monetary Agency (Sama) and a number of local and international banks with operations in the kingdom regarding the details, expecting an issue as early as the first quarter of next year.
The sukuk will not be launched directly by the government but will instead be marketed by either a governmental agency or a state fund.
The discussions with banks are focusing on the technicals of the issue, such as the tenor and whether the sukuk will have a fixed or floating profit rate.

Saudi in sukuk talks

Saudi Arabia is discussing with banks the possibility to launch a riyal-denominated Islamic bond, or sukuk as the kingdom abandons its aversion to sovereign-level debt to help build a local currency yield curve.
Talks are ongoing between the Saudi Arabian Monetary Agency and local and international banks with operations in the kingdom, with an issue forseen in the first quarter of next year. The sukuk will be marketed by a governmental agency or a state fund.

Sukuk is the way to fund Jeddah’s $7.2 billion new airport; Saudi civil aviation is set to be on its own

Sukuk will fund the new $7.2 billion airport project that is anticipated to issue in Jeddah within two months, inspite of a four-week delay of works related to the project. The statement came from head of the General Authority of Civil Aviation in Saudi Arabia, Prince Fahd bin Abdullah bin Mohammed al-Saud.
He also added that there are plans to change the General Authority of Civil Aviation to a stock-holding company and it will constitute four companies, specializing in four departments including international airports, domestic airports, air navigation, technology transfer and information.

ICD poised to boost activity with SR1 billion SME fund

It seems that the private sector funding arm of the IDB Group, is entering a new strategy to take its financing directly to its constituencies and to make its financing impact more on the real economy through the generation of employment and promoting growth.
This contains opening regional offices; setting up two new departments at the ICD; launching more Ijara (leasing companies) in diverse markets such as Albania, Saudi Arabia and Algeria; establishing SME investment funds including a SR1 billion fund for Saudi Arabia; and establishing a mortgage finance company in Saudi Arabia in anticipation of the long-awaited mortgage law.

Syndicate content