EMBARGOED UNTIL 26
2007 Review and 2008 Outlook: Islamic Finance Moody’s Investors Service • 3
Tamweel Residential ABS CI (1) Ltd is the first GCC globally rated residential Islamic securitisation
Moody's assigned definitive credit ratings, ranging from
, to notes issuedby Tamweel Residential ABS CI (1)
, with a total issue amount of US$220million. This is the first GCC residential Islamic securitisation rated investmentgrade. The assets are Ijarah lease receivables on residential properties located inDubai, United Arab Emirates (UAE). This is also the first securitisation originated byTamweel PJSC
, stable), one of the major and fastest-growing Shari’ah-compliant home financing lenders in the UAE.
Sudan was the first African country to issue a Sukuk in 2007, a US$130 milliontransaction to finance a cement project on the River Nile.
Takaful industry premiums reached nearly US$2.5 billion in 2007,
and areexpected to reach US$7.4 billion by 2015, representing a growing segment for Islamic investment opportunities. Nevertheless, Malaysia accounts for 90% of allTakaful customers worldwide. In the GCC, Saudi Arabia is recognised as the mostactive Takaful market.The Capital Market Authority (CMA) is opening up itsinsurance market with the issuance of 13 new licences, including five for Takafulcompanies.
The largest proportion of Sukuk was issued in the financial services sector,accounting for 31% of total volume, followed by real estate with 25% and power andutilities with 12%.
Local currency-denominated Sukuk demanded by investors
Given the declining US dollar, many GCC issuers opted for local currency-denominated Sukuk, meeting the needs of investors. JAFZ Sukuk Ltd (JSL
was the first AED-denominated Sukuk to be listed on the DubaiInternational Financial Exchange.
Demand for convertible Sukuk continued. High demand for these issuesdemonstrates that investors’ appetite for Sukuk with an equity potential upsideremains strong, given the recent gains in the equity market. The future of convertible Sukuk looks promising. A number of issues have come to the marketrecently, including Tamweel PJSC for US$300 million.
Growing Islamic real estate investment trusts issuance in Malaysia and the GCC
In September 2007, Al-Aqar KPJ Healthcare Islamic real estate investment trust(IREIT) obtained approval from the Malaysian Securities Commission (SC) for theissuance of up to MYR300 million (US$86 million) as a Sukuk Ijarah programme,combining both Islamic medium-term notes (MTN) and Islamic commercial paper (CP). Moreover, in the GCC, Dubai Islamic Bank PJSC
, stable) issuedShari’ah-compliant four-year capital-protected global IREIT notes in early 2007,which will invest through several global IREITs in the US, European and Asian(mainly Japanese) real estate markets.
Musharaka Sukuk the biggest asset structure by volume
EMEA and Asia Pacific 2007 Sukuk Transactions (Volume & Number)
U S $ M i l l i o n
I s s u e N o .
Size ( US$ Million)Issue No.