Majid Al Futtaim (MAF) Holding is preparing to sell Islamic bonds as increasing numbers of companies seek to bypass frozen western credit markets and raise funds through sukuk sales.
Tomorrow's exclusives tonight:
Industry Insights e-newsletter Stay ahead of the pack and get the pick of the premium Business content straight to your inbox. Sign up
The retail and hospitality giant, which operates Dubai's Mall of the Emirates, is laying the groundwork for a sukuk sale worth about US$500 million (Dh1.8 billion).
The company's overall $1bn sukuk programme is expected to be in place by the end of the month, with an issuance of five-year sukuk worth about $500m possible soon after, said Daniele Vecchi, MAF Holding's head of group treasury.
"At the moment it's probably a more favourable environment in the sukuk space than in the conventional space," said Mr Vecchi.
"Investors in Europe at the moment won't be the backbone of any transaction in the Middle East."
The proceeds would fund expansion plans worth $2bn for malls and shopping centres in Lebanon, Egypt and Syria, alongside plans for a hypermarket in Erbil in Kurdistan.
The sukuk sale is being arranged by Standard Chartered and HSBC, Mr Vecchi added.
Rising demand from big institutional investors in the Middle East and Asia such as pension funds has spurred a number of conventional banks to tap the Islamic bond market, as they seek to avoid investments that earn interest, prohibited under Sharia.
At the same time, cash-strapped European lenders are viewed as less likely to buy into Islamic instruments as they shore up their capital buffers.
In May HSBC Middle East tapped credit markets in what was at the time one of the biggest sukuk sales by a coventional lender.
Companies had been reluctant to issue new debt as crisis engulfs the euro zone and fears of low demand convince companies to hold off on new bond sales.
The use of sukuk has enabled banks in Abu Dhabi to raise large quantities of new finance.
Abu Dhabi Commercial Bank sold $500m of sukuk this month, following an issuance of $650m sukuk by First Gulf Bank in August.
Abu Dhabi Islamic Bank and Al Hilal Bank have also sought sukuk sales.
Union National Bank also sold $400m of bonds at the start of this month.
The rush to raise finance via Islamic loans comes as the ratings agency Standard & Poor's warns that Gulf bond issuers could face difficulties meeting deadlines to refinance bonds and sukuk worth $25bnmaturing next year.
The lack of Islamic bonds carrying a credit rating meant that conventional banks and companies that are already rated could raise finance more cheaply with sukuk than with bonds, said Simon Eedle, the global head of Islamic banking and head of fixed-income markets at Crédit Agricole.
"There's just a severe shortage of rated sukuk, so the demand is very high," he said.
[ ghunter@thenational.ae ]
twitter: Follow and share our breaking business news. Follow us
MATCH INFO
Watford 2 (Sarr 50', Deeney 54' pen)
Manchester United 0
Maestro
Director: Bradley Cooper
Starring: Bradley Cooper, Carey Mulligan, Maya Hawke
Rating: 3/5
MATCH INFO
Chelsea 1 (Hudson-Odoi 90+1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
The biog
Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.
Favourite book: Anything by Sidney Sheldon.
Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.
Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.
Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars
SCHEDULE
Saturday, April 20: 11am to 7pm - Abu Dhabi World Jiu-Jitsu Festival and Para jiu-jitsu.
Sunday, April 21: 11am to 6pm - Abu Dhabi World Youth (female) Jiu-Jitsu Championship.
Monday, April 22: 11am to 6pm - Abu Dhabi World Youth (male) Jiu-Jitsu Championship.
Tuesday, April 23: 11am-6pm Abu Dhabi World Masters Jiu-Jitsu Championship.
Wednesday, April 24: 11am-6pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Thursday, April 25: 11am-5pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Friday, April 26: 3pm to 6pm Finals of the Abu Dhabi World Professional Jiu-Jitsu Championship.
Saturday, April 27: 4pm and 8pm awards ceremony.
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
Results:
5pm: Conditions (PA) Dh80,000 1,400m | Winner: AF Tahoonah, Richard Mullen (jockey), Ernst Oertel (trainer)
5.30pm: Handicap (TB) Dh90,000 1,400m | Winner: Ajwad, Gerald Avranche, Rashed Bouresly
6pm: Maiden (PA) Dh80,000 1,600m | Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinel
6.30pm: Handicap (PA) Dh80,000 1,600m | Winner: Duc De Faust, Szczepan Mazur, Younis Al Kalbani
7pm: Wathba Stallions Cup (PA) Dh70,000 2,200m | Winner: Shareef KB, Fabrice Veron, Ernst Oertel
7.30pm: Handicap (PA) Dh90,000 1,500m | Winner: Bainoona, Pat Cosgrave, Eric Lemartinel
FORSPOKEN
Developer: Luminous Productions
Publisher: Square Enix
Console: PC, PS5
Release date: January
Company of Heroes 3
Developer: Relic Entertainment
Publisher: SEGA
Console: PC, PS5, XSX
Release date: February
Star Wars Jedi: Survivor
Developer: Respawn Entertainment
Publisher: Electronic Arts
Console: PC, PS5, XSX
Release date: March
Suicide Squad: Kill the Justice League
Developer: Rocksteady Studios
Publisher: Warner Bros
Console: PC, PS5, XSX
Release date: May
Final Fantasy XVI
Developer: Square Enix
Publisher: Square Enix
Console: PS5
Release date: June
Street Fighter 6
Developer: Capcom
Publisher: Capcom
Console: PS5, XSX, PC
Release date: June
Diablo IV
Developer: Blizzard Entertainment
Publisher: Blizzard Entertainment
Console: PC, PS5, XSX
Release date: June
Baldur's Gate 3
Developer: Larian Studios
Publisher: Larian Studios
Console: PC
Release date: August
The Legend of Zelda: Tears of The Kingdom
Developer: Nintendo
Publisher: Nintendo
Console: Nintendo Switch
Release date: September
Marvel's Spider-Man 2
Developer: Insomniac Games
Publisher: PlayStation
Console: PS5
Release date: Fall
Assassin's Creed Mirage
Developer: Ubisoft
Publisher: Ubisoft
Console: PC, PS5, XSX, Amazon Luna
Release date: 2023
Starfield
Developer: Bethesda Game Studios
Publisher: Bethesda Softworks
Console: PC, Xbox
Release date: 2023
Rock in a Hard Place: Music and Mayhem in the Middle East
Orlando Crowcroft
Zed Books
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
'Tell the Machine Goodnight' by Katie Williams
Penguin Randomhouse
THE FLASH
Director: Andy Muschietti
Stars: Sasha Calle, Ben Affleck, Ezra Miller
Rating: 3/5
MATCH INFO
World Cup 2022 qualifier
UAE v Indonesia, Thursday, 8pm
Venue: Al Maktoum Stadium, Dubai
Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
Ahmedabad: January 1 (from October 27)
Colombo: January 2 (from January 1)
Muscat: March 1 (from December 1)
Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
Profile Idealz
Company: Idealz
Founded: January 2018
Based: Dubai
Sector: E-commerce
Size: (employees): 22
Investors: Co-founders and Venture Partners (9 per cent)
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter