Latest news with #Standard62
Al Etihad
08-07-2025
- Business
- Al Etihad
Outlook good for foreign currency sukuk issuances: S&P Global Ratings report
8 July 2025 19:23 A. SREENIVASA REDDY (ABU DHABI)Global sukuk issuance remained resilient in the first half of 2025 despite heightened geopolitical tensions and volatility in international capital markets, according to a new report by S&P Global Ratings. The total volume of sukuk issued fell by nearly 15% to $101.3 billion in first half of 2025 compared to $119 billion in the same period last year, driven by a notable decline in local currency-denominated issuance. However, foreign currency sukuk gained momentum, rising to $41.4 billion in H1 2025, from $38 billion a year earlier.S&P forecasts that foreign currency-denominated sukuk issuance will remain strong in the second half of 2025, with full-year volumes expected to reach between $70 billion and $80 billion. "The growth has been supported by significant financing needs in core Islamic finance markets, particularly the UAE, Bahrain, and Kuwait, where issuers tapped favourable market windows amid ongoing economic growth and fiscal deficits,' the S&P Ratings said. 'In the UAE, where we observed a significant increase in the volume of issuances, banks and corporates tapped the market to finance growth amid a still-supportive economy. In Malaysia, the International Islamic Liquidity Management Corp. continued to tap the market, providing the industry with much-needed liquidity management instruments and contributing to the bulk of the country's foreign currency issuances,' the S&P report said. In contrast, local currency sukuk issuance dropped to $59.8 billion at midyear, down from $81 billion in 2024. This decline was attributed to subdued liquidity conditions and reduced financing needs in several key markets, including the UAE, Saudi Arabia, Malaysia, and report also highlighted uncertainty surrounding the future of AAOIFI's Standard 62, a proposed amendment that could impact sukuk structuring. The timeline for implementation remains unclear, and S&P noted that the perceived urgency among issuers to issue before the standard's adoption has diminished. 'Questions linger over whether the standard will mandate effective asset ownership transfer to investors, which could alter the risk profile of sukuk and potentially disadvantage holders of unsecured instruments,' the report sustainable sukuk experienced robust growth, with issuance volume rising 27% year-on-year to $9.3 billion in the first half of 2025 from $7.4 billion in H1, 2024. Banks, particularly the Islamic Development Bank, contributed nearly half of this activity, with Saudi Arabian issuers accounting for over 60% of the sustainable sukuk market. Driven by strong demand and alignment between Islamic finance and sustainability principles, S&P raised its full-year forecast for sustainable sukuk issuance to between $14 billion and $16 billion. The outlook for the second half of 2025 remains positive, supported by expectations of a 50-basis-point interest rate cut by the US Federal Reserve and a stable geopolitical scenario that avoids full-scale regional conflict.
Gulf Today
01-06-2025
- Business
- Gulf Today
Diamond Standard announces Fatwa: The ideal solution for Islamic finance
Diamond Standard Co., producer of the world's only regulator-approved natural diamond commodities, today announced a historic milestone for the Islamic finance industry: the issuance of a Fatwa by Sheikh Dr. Mohamed Ali Elgari, approving the use of diamond commodities to enable more efficient and more proper Islamic finance applications. Dr. Elgari is an esteemed authority in Islamic finance, having served as Professor and Director of the Centre for Research in Islamic Economics at King Abdulaziz University, and as Shariah board member for organizations including AAOIFI, Islamic Fiqh Academy, Abu Dhabi Islamic Bank, BlackRock, Citibank, Dubai Islamic Bank, Emirates NDB, HSBC, Standard Chartered and other banks worldwide. A New Era for $5 Trillion of Islamic Finance The Fatwa signifies a pivotal breakthrough for Islamic finance, where the lending of money with interest is prohibited under Shariah. Instead of directly lending money, the annual settlement for $5 trillion of global loan and bond transactions must be asset-backed, through structures like commodity Murabaha. Until now, commodity Murabaha used metals like nickel, copper, or aluminum. These assets were often created on paper, as options and warrants—a practice now in conflict with AAOIFI Standard 62, which requires the title to the commodity to be delivered to the borrower. Gold, silver, and food commodities are not permitted for Murabaha, and use of metals can result in substantial storage and delivery costs. In contrast, Diamond Standard commodities are a Shariah compliant, fully deliverable and fungible physical asset, with custody and delivery costs up to 97% less than that for metals like copper. After the issuance of Standard 62, a consortium of Islamic banks asked Diamond Standard to develop a commodity Murahaba solution, with audited physical custody in a Muslim majority country. Technology Meets Tradition Diamonds are a $1.2 trillion natural resource that was inaccessible to investors. Diamond Standard commodities—physical Coins and Bars—contain optimized and equivalent sets of diamonds, transparently sealed with a wireless computer chip. Since the commodities are all equal, they trade easily on spot exchanges, with a daily market price reported by Bloomberg. The wireless chip enables each commodity to issue an electronic title of ownership, recorded and traded securely on a public blockchain. This innovation supports instant title transfer and remote audit, and eliminates all uncertainty. The commodities are approved to settle CFTC-regulated futures and options in the U.S., and the commodity production is internally audited by Deloitte. GCC Expansion and Islamic Trading Platform To provide a standing pool of commodities to support Islamic applications, and enable investors to allocate to diamonds as a newly accessible natural resource, Diamond Standard is launching a commodity holding and trading company in the Gulf Cooperation Council (GCC) region. This entity will: Supply Shariah-compliant diamond commodities to Islamic finance institutions and trading platforms for Murabaha via an active market making desk. Offer a listed fund vehicle for equity and Sukuk investors seeking to invest in hard assets, expecting the value of diamonds to increase due to Islamic and investment demand. Anchor the development of new manufacturing, exports, and trading in the GCC region. This Diamond Standard commodity holding company has secured $280 million in capital commitments and is in discussions with GCC anchor investors to finalize the location of diamond importing, production and trading in the region. The initiative is expected to create over 200 new jobs, relating to commodity operations, import and export, marketing, trading, custody, and lending–as well as Islamic finance jobs. Tax Free Custody at DMCC Diamond Standard also announced that it had selected the Dubai Multi Commodities Centre (DMCC) as the venue to provide audited, tax-free custody for the Diamond Standard commodities. This will benefit Islamic banks and investors by avoiding the tariffs on diamonds entering the U.S. and elsewhere. Unlocking a New Future Cormac Kinney, Founder and CEO of Diamond Standard, stated: 'We intended to unlock $1.2 trillion of natural diamonds as an investment asset, but their dense value, combined with modern technology, has surprisingly made diamonds ideal for Islamic finance. We are honored to offer this asset to strengthen Islamic values.' By establishing Shariah-compliant diamond commodities, Diamond Standard is pioneering a new asset class for Islamic finance—fusing centuries-old ethical values with the latest innovations in blockchain and commodities, and offering borrowers and investors an unexpected, but ideal solution for modern Islamic financial transactions. For more information, visit
Web Release
31-05-2025
- Business
- Web Release
Diamond Standard Announces Fatwa: The Ideal Solution for Islamic Finance
Diamond Standard Co., producer of the world's only regulator-approved natural diamond commodities, today announced a historic milestone for the Islamic finance industry: the issuance of a Fatwa by Sheikh Dr. Mohamed Ali Elgari, approving the use of diamond commodities to enable more efficient and more proper Islamic finance applications. Dr. Elgari is an esteemed authority in Islamic finance, having served as Professor and Director of the Centre for Research in Islamic Economics at King Abdulaziz University, and as Shariah board member for organizations including AAOIFI, Islamic Fiqh Academy, Abu Dhabi Islamic Bank, BlackRock, Citibank, Dubai Islamic Bank, Emirates NDB, HSBC, Standard Chartered and other banks worldwide. A New Era for $5 Trillion of Islamic Finance The Fatwa signifies a pivotal breakthrough for Islamic finance, where the lending of money with interest is prohibited under Shariah. Instead of directly lending money, the annual settlement for $5 trillion of global loan and bond transactions must be asset-backed, through structures like commodity Murabaha. Until now, commodity Murabaha used metals like nickel, copper, or aluminum. These assets were often created on paper, as options and warrants—a practice now in conflict with AAOIFI Standard 62, which requires the title to the commodity to be delivered to the borrower. Gold, silver, and food commodities are not permitted for Murabaha, and use of metals can result in substantial storage and delivery costs. In contrast, Diamond Standard commodities are a Shariah compliant, fully deliverable and fungible physical asset, with custody and delivery costs up to 97% less than that for metals like copper. After the issuance of Standard 62, a consortium of Islamic banks asked Diamond Standard to develop a commodity Murahaba solution, with audited physical custody in a Muslim majority country. Technology Meets Tradition Diamonds are a $1.2 trillion natural resource that was inaccessible to investors. Diamond Standard commodities—physical Coins and Bars—contain optimized and equivalent sets of diamonds, transparently sealed with a wireless computer chip. Since the commodities are all equal, they trade easily on spot exchanges, with a daily market price reported by Bloomberg. The wireless chip enables each commodity to issue an electronic title of ownership, recorded and traded securely on a public blockchain. This innovation supports instant title transfer and remote audit, and eliminates all uncertainty. The commodities are approved to settle CFTC-regulated futures and options in the U.S., and the commodity production is internally audited by Deloitte. GCC Expansion and Islamic Trading Platform To provide a standing pool of commodities to support Islamic applications, and enable investors to allocate to diamonds as a newly accessible natural resource, Diamond Standard is launching a commodity holding and trading company in the Gulf Cooperation Council (GCC) region. This entity will: Supply Shariah-compliant diamond commodities to Islamic finance institutions and trading platforms for Murabaha via an active market making desk. Offer a listed fund vehicle for equity and Sukuk investors seeking to invest in hard assets, expecting the value of diamonds to increase due to Islamic and investment demand. Anchor the development of new manufacturing, exports, and trading in the GCC region. This Diamond Standard commodity holding company has secured $280 million in capital commitments and is in discussions with GCC anchor investors to finalize the location of diamond importing, production and trading in the region. The initiative is expected to create over 200 new jobs, relating to commodity operations, import and export, marketing, trading, custody, and lending–as well as Islamic finance jobs. Tax Free Custody at DMCC Diamond Standard also announced that it had selected the Dubai Multi Commodities Centre (DMCC) as the venue to provide audited, tax-free custody for the Diamond Standard commodities. This will benefit Islamic banks and investors by avoiding the tariffs on diamonds entering the U.S. and elsewhere. Unlocking a New Future Cormac Kinney, Founder and CEO of Diamond Standard, stated: 'We intended to unlock $1.2 trillion of natural diamonds as an investment asset, but their dense value, combined with modern technology, has surprisingly made diamonds ideal for Islamic finance. We are honored to offer this asset to strengthen Islamic values.' By establishing Shariah-compliant diamond commodities, Diamond Standard is pioneering a new asset class for Islamic finance—fusing centuries-old ethical values with the latest innovations in blockchain and commodities, and offering borrowers and investors an unexpected, but ideal solution for modern Islamic financial transactions. For more information, visit
Mid East Info
29-05-2025
- Business
- Mid East Info
Diamond Standard Announces Fatwa: The Ideal Solution for Islamic Finance
Diamond Standard Co., producer of the world's only regulator-approved natural diamond commodities, today announced a historic milestone for the Islamic finance industry: the issuance of a Fatwa by Sheikh Dr. Mohamed Ali Elgari, approving the use of diamond commodities to enable more efficient and more proper Islamic finance applications. Dr. Elgari is an esteemed authority in Islamic finance, having served as Professor and Director of the Centre for Research in Islamic Economics at King Abdulaziz University, and as Shariah board member for organizations including AAOIFI, Islamic Fiqh Academy, Abu Dhabi Islamic Bank, BlackRock, Citibank, Dubai Islamic Bank, Emirates NDB, HSBC, Standard Chartered and other banks worldwide. A New Era for $5 Trillion of Islamic Finance: The Fatwa signifies a pivotal breakthrough for Islamic finance, where the lending of money with interest is prohibited under Shariah. Instead of directly lending money, the annual settlement for $5 trillion of global loan and bond transactions must be asset-backed, through structures like commodity Murabaha. Until now, commodity Murabaha used metals like nickel, copper, or aluminum. These assets were often created on paper, as options and warrants—a practice now in conflict with AAOIFI Standard 62, which requires the title to the commodity to be delivered to the borrower. Gold, silver, and food commodities are not permitted for Murabaha, and use of metals can result in substantial storage and delivery costs. In contrast, Diamond Standard commodities are a Shariah compliant, fully deliverable and fungible physical asset, with custody and delivery costs up to 97% less than that for metals like copper. After the issuance of Standard 62, a consortium of Islamic banks asked Diamond Standard to develop a commodity Murahaba solution, with audited physical custody in a Muslim majority country. Technology Meets Tradition: Diamonds are a $1.2 trillion natural resource that was inaccessible to investors. Diamond Standard commodities—physical Coins and Bars—contain optimized and equivalent sets of diamonds, transparently sealed with a wireless computer chip. Since the commodities are all equal, they trade easily on spot exchanges, with a daily market price reported by Bloomberg. The wireless chip enables each commodity to issue an electronic title of ownership, recorded and traded securely on a public blockchain. This innovation supports instant title transfer and remote audit, and eliminates all uncertainty. The commodities are approved to settle CFTC-regulated futures and options in the U.S., and the commodity production is internally audited by Deloitte. GCC Expansion and Islamic Trading Platform: To provide a standing pool of commodities to support Islamic applications, and enable investors to allocate to diamonds as a newly accessible natural resource, Diamond Standard is launching a commodity holding and trading company in the Gulf Cooperation Council (GCC) region. This entity will: Supply Shariah-compliant diamond commodities to Islamic finance institutions and trading platforms for Murabaha via an active market making desk. Offer a listed fund vehicle for equity and Sukuk investors seeking to invest in hard assets, expecting the value of diamonds to increase due to Islamic and investment demand. Anchor the development of new manufacturing, exports, and trading in the GCC region. This Diamond Standard commodity holding company has secured $280 million in capital commitments and is in discussions with GCC anchor investors to finalize the location of diamond importing, production and trading in the region. The initiative is expected to create over 200 new jobs, relating to commodity operations, import and export, marketing, trading, custody, and lending–as well as Islamic finance jobs. Tax Free Custody at DMCC: Diamond Standard also announced that it had selected the Dubai Multi Commodities Centre (DMCC) as the venue to provide audited, tax-free custody for the Diamond Standard commodities. This will benefit Islamic banks and investors by avoiding the tariffs on diamonds entering the U.S. and elsewhere. Unlocking a New Future: Cormac Kinney, Founder and CEO of Diamond Standard, stated: 'We intended to unlock $1.2 trillion of natural diamonds as an investment asset, but their dense value, combined with modern technology, has surprisingly made diamonds ideal for Islamic finance. We are honored to offer this asset to strengthen Islamic values.' By establishing Shariah-compliant diamond commodities, Diamond Standard is pioneering a new asset class for Islamic finance—fusing centuries-old ethical values with the latest innovations in blockchain and commodities, and offering borrowers and investors an unexpected, but ideal solution for modern Islamic financial transactions.
Biz Bahrain
06-02-2025
- Business
- Biz Bahrain
Sukuk Market Will Likely Have More Time To Adopt AAOIFI Standard 62, Report Says
At the beginning of February, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held a couple of public hearings on Sharia Standard 62. In S&P Global Ratings' view, this standard will shape the future of the sukuk market. (See 'Sukuk Brief: More Time To Adopt AAOIFI Standard 62') The AAOIFI will likely give issuers more time to implement Sharia Standard 62. In its public hearing over the weekend, the AAOIFI mentioned that it is likely to approve Standard 62 in 2025, and that issuers will likely have between one and three years to implement the new requirements, depending on the AAOIFI's final decision. 'Depending on the final timeline that the AAOIFI gives the market, this development could give sukuk structurers more time to develop structures that strike a balance between complying with the new requirements and making the sukuk attractive to fixed-income investors, if this is still possible,' said S&P Global Ratings credit analyst Mohamed Damak. 'However, the adoption of the standard could cause a decline in sukuk issuance,' Mr. Damak added. If adopted as proposed, Sharia Standard 62 will, in our view, result in the sukuk market shifting away from structures in which the sukuk sponsors' contractual obligations underpin their repayments, to structures in which the underlying assets have a more prominent role. Notwithstanding the fact that issuers will have more time to adjust to the new requirements, investors will likely face new risks relating to asset performance and value. We continue to believe that if the standard is adopted as proposed, some investors and issuers may choose alternatives to the sukuk market, as issuing sukuk might become more onerous from a risk/reward perspective. This could also encourage some adopters to transition away from the standards if their ability to tap the capital markets is significantly restricted.
