Azimut Middle East’s Post

Islamic finance and Climate finance are drawn closer together by Tahawwut Tahawwut, an Islamic hedging tool, has been around for less than 15 years - it is still being treated as a novel finance solution in most jurisdictions. Still, Tahawwut forms the basis for XTCC - the world's only Shariah compliant climate investment instrument based on voluntary carbon credits. It is likely to be the world's most profitable among ethical investments... or the most profitable among the ethical ones... #islamicfinance #tahawwut #shariah #sukuk #carboncredits #netzero

26 September 2024 - We bring you the latest news related to Malaysia's Bond & Sukuk. Let's take a look at today's highlights: • Islamic financial instruments support Asean's sustainability agenda, says BNM’s Adnan • Investment outlook remains bright in 2H24 • U.S. Treasury yields slip as investor focus shifts to Fed meeting Head on to www.bixmalaysia.com for more info. #malaysiabond #malaysiasukuk #bond #sukuk #fixedincome #News #Newsupdate #BIXMalaysia #BIX #investing

The stabilization of global liquidity conditions and high financing needs in core Islamic finance countries significantly increased foreign currency-denominated #sukuk issuance in 2023. We forecast global sukuk issuance will total $160 billion-$170 billion in 2024, including foreign currency-denominated issuance of $45 billion-$50 billion. Read more: https://ow.ly/92iP50QrAWg

Thoughts in International Financing Review (IFR) ''𝕊𝕙𝕒𝕣𝕚𝕒 𝕡𝕣𝕠𝕡𝕠𝕤𝕒𝕝𝕤 𝕔𝕠𝕦𝕝𝕕 𝕞𝕖𝕒𝕟 𝕒 '𝕣𝕖𝕧𝕠𝕝𝕦𝕥𝕚𝕠𝕟' 𝕚𝕟 𝕤𝕦𝕜𝕦𝕜 𝕞𝕒𝕣𝕜𝕖𝕥'' “Typically, sukuk are structured as entity credit-risk instruments and in a default and redemption scenario, the sukukholders would not have recourse to the assets themselves,” said Bashar Al-Natoor, global head of Islamic finance at Fitch. “Recovery is based on investors exercising their rights against the originator.” “From an investor’s perspective, considering the credit risk of the asset, rather than the credit risk of the obligor, is not something that there is a track record of in many Islamic jurisdictions,” Al-Natoor said. “Furthermore, the investor desks which deal with asset-backed securities could also be different, and ... are not present in many sukuk-issuing markets,” he said. Please see the piece in IFR here: https://lnkd.in/dVF64zqh Also been made available by ZAWYA here: https://lnkd.in/duYtv3zB ➖➖➖➖➖➖➖➖➖➖➖🔗⬇️ 𝕱𝖔𝖗 𝖒𝖔𝖗𝖊 𝖔𝖓 𝕴𝖘𝖑𝖆𝖒𝖎𝖈 𝕱𝖎𝖓𝖆𝖓𝖈𝖊: https://lnkd.in/fucmrFT ➖➖➖➖➖➖➖➖➖➖➖#️⃣⬇️ #islamicfinance #sukuk #islamicbanking #capitalmarkets

We expect positive contributions from all the #islamicfinance industry' components to sustain this growth throughout the remainder of 2024. Headwinds for the sukuk market are on the horizon, though, with the expected adoption of a new standard that could subdue issuance growth in 2025 and beyond. Read more: Islamic Finance 2024-2025: Resilient Growth Anticipated Despite Missed Opportunities | S&P Global Ratings (spglobal.com)

Unlike conventional bonds, which represent debt and involve interest payments, Sukuk represent ownership in a tangible asset, usufruct of an asset, project, business, or investment. Investors receive returns generated by these assets, such as rental income or profit sharing from business operations. The key principle is the sharing of profit and loss, ensuring that investments are tied to real economic activities and not just financial speculation. This structure fosters risk-sharing between the issuer and the investor, aligning with Islamic finance's ethical guidelines. Sukuk, an alternative investment vehicle for Islamic and non-Islamic investors seeking ethical investments, have changed global finance. They allow Muslim- and non-Muslim-majority governments and enterprises to access finance markets while adhering to Islamic ideals. Sukuk has facilitated global infrastructure projects, boosting economic growth and financial inclusion. The rise of the Sukuk market has increased Islamic financial market liquidity and depth, encouraging stability and integration with the global financial system. #IslamicFinance #Sukuk #EthicalInvesting

S&P Global Ratings maintains its 2024 global sukuk issuance forecast at $160 billion–$170 billion but cautions that Sharia Standard 62 could impact the market. In H1 2024, sukuk issuance reached $91.9 billion, with a significant shift towards foreign currency-denominated issuances, up 23.8% from the previous year. #theemiratestimes #Sukuk #IslamicFinance #ShariaStandards #FinancialMarkets https://lnkd.in/g9FfFDxM

The growth of the Sukuk bond market over recent years has been driven by more than mere ethical considerations: many investors are drawn to it for diversification reasons. Read our latest insights on the market’s overall development and the dynamics that are shaping its evolution at https://bit.ly/3Y8LAAP #FixedIncome #IslamicFinance #ShareUBS

The growth of the Sukuk bond market over recent years has been driven by more than mere ethical considerations: many investors are drawn to it for diversification reasons. Read our latest insights on the market’s overall development and the dynamics that are shaping its evolution at https://from.ubs/6042mUZMO #FixedIncome #IslamicFinance #ShareUBS

The growth of the Sukuk bond market over recent years has been driven by more than mere ethical considerations: many investors are drawn to it for diversification reasons. Read our latest insights on the market’s overall development and the dynamics that are shaping its evolution at https://from.ubs/6042mxi5Q #FixedIncome #IslamicFinance #ShareUBS