Demand for Sharia-compliant financing is set to outpace conventional funding in 2023, driven by strong economic growth and development agendas in key markets including Saudi Arabia amid higher oil prices, Moody’s Investors Service has said.
Global sukuk issuance this year is forecast to “level off” in the range of $170 billion to $175 billion in 2023, supported by sovereign financing needs in key Asian markets of Malaysia and Indonesia and resilient demand from banking and corporate sectors, Moody’s said in a research note on Wednesday.
The levelling off of sukuk volumes follows a 10 per cent fall in 2022 to $178 billion given lower funding requirements from the six-member economic bloc of GCC region and South-east Asian markets.
“We expect Islamic banking in key markets to keep growing faster than conventional peers supported by robust economic activity in South-east Asia and the GCC region,” Ashraf Madani, vice president and senior credit officer at Moody’s, said.
“This will be driven by high commodity prices and governments' economic diversification agendas; sovereigns’ continued backing and promotion of the Islamic finance industry and growing demand for Sharia-compliant products.”
Although Saudi Arabia, the biggest Arab economy and the Opec’s leading oil exporter, and Malaysia will continue to lead sukuk issuances, the potential for growth in other jurisdictions also remains high, he said.
Long-term sovereign sukuk issuance will also stabilise in 2023 after two years of declines at around $80 billion level, before rising to around $80 billion to $85 billion in 2024.
The levelling off of global long-term sovereign sukuk issuance volumes at around last year's level follows the declining trend since the all-time high hit in 2020.
Issuance volumes fell 22 per cent to $80 billion in 2022 as significantly higher energy-related government revenue pushed fiscal deficits into surpluses for most GCC sovereigns and helped reduce fiscal deficits in Malaysia and Indonesia.
The post-pandemic economic recovery also supported stronger fiscal performance, which slashed the net financing needs of major sukuk-issuing governments.
Malaysia, Indonesia and Turkey are expected to be the largest sovereign issuers this year and next, Moody’s said in a separate report.
Supportive hydrocarbon prices continue to bolster fiscal balances of energy-exporting sovereign sukuk issuers. With most GCC sovereigns still recording budget surpluses this year and in 2024, Moody’s expects their issuances to be mainly driven by the need to either refinance or repay maturing sukuk.
“We expect significantly lower gross issuance from GCC to be broadly offset by higher volumes elsewhere, particularly in Indonesia, where domestic sukuk issuance dipped significantly in 2022,” Alexander Perjessy, senior credit officer at Moody’s, said.
Oil prices that surged more than 60 per cent in 2021, continued the upwards momentum in 2022. The wild swings triggered by Russia’s assault on Ukraine that pushed Brent to a notch under $140 per barrel settled towards the end of last year and the benchmark for two thirds of the world’s closed 2022 at about $80 per barrel mark.
It is still trading at more than $83 a barrel level, which supports the budgets of energy-exporting nations of the Gulf region. Continuing current account surpluses also give GCC sovereigns the financial muscle to implement their development agendas, which they are partly funding through a combination of conventional and Islamic financing.
Despite lower funding requirements in 2022, GCC countries, along with Malaysia and Indonesia, remained the largest issuers of sovereign sukuk. Together they accounted for 77 per cent of total long-term gross sovereign sukuk issuance and 87 per cent of outstanding long-term sovereign sukuk issuance at the end of last year, according to Moody’s data.
Within the GCC, Saudi Arabia was the single largest issuer since the launch of its domestic riyal-denominated sukuk issuance programme in 2017, accounting for 78 per cent of outstanding government sukuk sold in the region and 34 per cent of government sukuk issued globally.
“Malaysia, Indonesia and Turkey were the next three largest sovereign issuers in 2022, with market shares of 25 per cent, 19 per cent and 5 per cent, respectively,” Moody’s analysts said.
UAE currency: the story behind the money in your pockets
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
Results
%3Cp%3EStage%204%3A%0D%3Cbr%3E1.%20Juan%20Sebastian%20Molano%20(COL)%20Team%20UAE%20Emirates%20%E2%80%93%203hrs%2050min%2001sec%0D%3Cbr%3E2.%20Olav%20Kooij%20(NED)%20Jumbo-Visma%20%E2%80%93%20ST%0D%3Cbr%3E3.%20Sam%20Welsford%20(AUS)%20Team%20DSM)%20%E2%80%93%20ST%0D%3Cbr%3EGeneral%20Classification%3A%0D%3Cbr%3E1.%20Remco%20Evenepoel%20(BEL)%20Soudal%20Quick-Step%0D%3Cbr%3E2.%20Lucas%20Plapp%20(AUS)%20Ineos%20Grenaders%20%E2%80%93%207%E2%80%B3%0D%3Cbr%3E3.%20Pello%20Bilbao%20(ESP)%20Bahrain%20Victorious%20%E2%80%93%2011%E2%80%B3%3C%2Fp%3E%0A
Racecard
7pm: Abu Dhabi - Conditions (PA) Dh 80,000 (Dirt) 1,600m
7.30pm: Dubai - Maiden (TB) Dh82,500 (D) 1,400m
8pm: Sharjah - Maiden (TB) Dh82,500 (D) 1,600m
8.30pm: Ajman - Handicap (TB) Dh82,500 (D) 2,200m
9pm: Umm Al Quwain - The Entisar - Listed (TB) Dh132,500 (D) 2,000m
9.30pm: Ras Al Khaimah - Rated Conditions (TB) Dh95,000 (D) 1,600m
10pm: Fujairah - Handicap (TB) Dh87,500 (D) 1,200m
Mohammed bin Zayed Majlis
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
