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Islamic Finance

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An Overview on Islamic Finance

June 27 2019 9:00am (EDT) 2:00pm (BST)

Fitch Ratings is hosting a webcast with Bashar Al Natoor, Global Head of Islamic Finance.



Fitch Ratings Wins The Asset Triple A Islamic Finance Best Rating Agency Award 2019

For the third year in a row, The Asset Triple A Islamic Finance Awards has awarded Fitch Ratings the Best Rating Agency Award 2019.

rating action

Fitch Rates MAF's Green Sukuk 'BBB'

The recently placed sukuk, which was priced at 4.64%, will mature in May 2029. The proceeds from the green sukuk issue will be used to finance or refinance in whole or in part, a portfolio of eligible green projects, in accordance with MAF's green finance framework.

why forum

Why Fast-Tracking Corporate Sukuk Growth Could Be Done in 4X4 Strides

The sukuk market has the potential to grow considerably in the near to medium term as key Islamic capital markets develop. Four key areas need to be harnessed to fast-track corporates as a significant player in the sukuk and the debt capital markets.

rating action

Serba Dinamik's First-Time 'BB-' Rating; Outlook Stable

SDHB's rating reflects its strong market position in Malaysia, where it is the fourth-largest provider of operation and maintenance services to the oil and gas industry by 2017 revenue. The rating is also supported by SDHB's solid financial profile, short-to-medium term revenue visibility and relatively low earnings cyclicality. Nevertheless, we believe that the company's small operating scale constrains its rating.

Malaysian Islamic Banks' Momentum Likely to Continue in 2019

Financing growth in Malaysia's Islamic banking sector is likely to continue to surpass that of conventional loans as banks prioritise offerings of Islamic banking products over conventional ones.

why forum

Why Regulations, Awareness and Crossover Can Boost Takaful Growth

Takaful (Islamic insurance) is one of the pillars of Islamic finance markets but its growth requires further impetus. Takaful accounted for USD46 billion of global Islamic finance assets in 2017, up by 4.5% from 2016, writes Global Head of Islamic Finance, Bashar Al Natoor.

Rating Action

Indonesia's USD Sukuk Rated Final 'BBB'

Two tranches were issued - USD750 million maturing August 2024 and USD1.25 billion maturing February 2029. The August 2024 maturity is a green sukuk and its proceeds will be used to finance or refinance green projects, as defined in the government's green sukuk framework. 

rating action

Fitch Assigns Mumtalakat USD600 Million Sukuk Certificates 'BB-' Final Rating.

MSHC is the issuer of the certificates and trustee. MSHC is an exempted company with limited liability incorporated in the Cayman Islands, which has been established for the sole purpose of issuing the certificates, and is owned by Mumtalakat. The yield of the certificates is 5.625% per year.

Better Performance by Indonesian Islamic Banks but Challenges Ahead

The Indonesian sharia banking sector's financial performance considerably improved during 9M18, reflected in better asset quality, higher profitability and stronger capitalisation. However, further development of risk management and corporate governance standards is key to improving its competitiveness with conventional banks.

rating action

Affirmed: Jordan Islamic Bank at 'BB-'; Outlook Stable

JIB's IDRs are driven by its standalone credit profile, as defined by its Viability Rating (VR). As JIB is essentially a domestic bank, its ratings and Outlook are constrained by Jordan's challenging operating environment. 

Kuwaiti Islamic Banks Show Resilient Asset Quality; Strong Liquidity

Kuwaiti Islamic banks had a 38% market share of total banking system assets at end-1H18. Islamic banking activities are only undertaken by Islamic banks as the Central Bank of Kuwait does not permit conventional banks to operate through Islamic windows. 

why forum

Why the Corporate Sukuk Market Could be Ripe for Blossoming

Sukuk issuance by corporates in 2018 in key Islamic finance markets, such as the Gulf Cooperation Council (GCC) region, Indonesia, Turkey and Pakistan, has been small relative to its potential.

Operating Environment Key Sensitivity for Turkish Islamic Banks

Fitch Ratings says the market share of Turkey's participation (Islamic) banks has remained broadly stable and growth is set to remain subdued in the short term due to the weaker growth outlook, the high interest-rate environment, the end to FC-indexed financing and asset-quality pressures. 

Sukuk Issuance Volumes Normalise From 2017 Record High

Sukuk issuance in the ten largest markets fell last year following record issuance in 2017, Fitch Ratings says. We do not believe this reflects long-term trends, but it shows how issuance volumes can be influenced by the activity of individual borrowers, notably oil-exporting sovereigns. 

Zakat Settlements Remove Key Uncertainty for Saudi Banks

Confirmation of Saudi banks' extra zakat payments for years up to and including 2017 removes a key near-term uncertainty that could have pressured some banks' ratings. The extra amounts, due to a backdated change in the zakat calculation, will not materially deplete banks' capital buffers and do not affect their ratings. 

CNBC Arabia

Sukuk Issuance in Top 10 Markets to Decline by 30% in 2018

From minute 9:40 to 17:05, Fitch Ratings' Global Head of Islamic Finance, Bashar Al Natoor, discusses the performance and outlook for the global sukuk markets on CNBC Arabia. Sukuk issuance is more likely to stabilise or slightly recover in 2019 than fall further. 


Bashar Al Natoor


Bashar Al Natoor

Global Head of Islamic Finance

+971 4424 1242

Redmond Ramsdale


Redmond Ramsdale


+44 203 530 1836

Ambreesh Srivastava


Ambreesh Srivastava


+65 6796 7218


Stephane Buemi


+44 20 3530 1236

Jeffrey Liew


Jeffrey Liew

Hong Kong

+852 2263 9939

Paul Gamble


Paul Gamble


+44 20 3530 1623

Markus Papenroth

Structured Finance, ABS

Markus Papenroth


+44 20 3530 1707

Ameer Toma

Investor Development – Director

Ameer Toma

Middle East

+971 424 1265

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