The comments from Zahid Aslam, Managing Director of Investment Banking at Dalma Capital Management Limited, come as the firm reports an almost one-third jump in enquiries regarding Sharia-compliant bond issuances from corporations outside of the GCC.
The news follows S&P Global Ratings predicting in January the global issuance of Sharia-compliant foreign and local currency bonds is expected to reach as much as US$115 billion (Dh422.1bn) this year.
“It is our experience that sukuk-based solutions are establishing themselves as an increasingly attractive alternative for the funding of infrastructure and development projects,” observes Mr. Aslam. “For example, we are currently working with clients on a variety of ‘off the beaten path’ projects, including a refinery initiative in the CIS region and a scheme to help develop eco-tourism and sustainable farming in several African nations. We are also seeing interest from Malaysia, Indonesia and Pakistan.”
He continues: “I would suggest that there are five main drivers for this significant upward trend for sukuk-issuance to continue this year and beyond.
“Firstly, lower oil prices – despite recent gains – have created a funding shortfall for many.
“Secondly, there is notable and mounting pressure on global liquidity.
“Thirdly, the US Federal Reserve’s ongoing plans to slowly raise interest rates, making borrowing more expensive.
“Fourthly, global regulation is enhancing and becoming more Islamic finance-friendly.
“Finally, general awareness outside the GCC of the uses and benefits are becoming ever-more understood and valued. Dalma Capital, being a licensed and regulated asset manager and investment boutique with a network of institutions and accredited partners, provides all the necessary solutions for sukuk issuers and investors.”
Zachary Cefaratti, CEO at Dalma Capital concluded: “There is growing evidence that potential borrowers who had never considered Islamic Finance are better understanding the clear benefits of such solutions.
“This is cemented by the fact that deals can be structured to be project based, not centred solely on the credit standing of the borrower. Numerous virtuous aspects of the nature of Sukuk will continue to bolster their prevalence in capital markets globally.”
(Source: Dalma Capital)
New research released from financial services technology leader FIS (NYSE: FIS) found that financial institutions with the most advanced operating models are growing nearly twice as fast as the rest of the industry.
The FIS research also found that financial services executives around the world are more confident in their underlying technology and operating models in 2018. Nearly half (47%) of firms surveyed said their operations function is strong enough to support their growth plans this year, compared with 28% in 2017.
The findings are part of the annual FIS Readiness Report, which surveyed more than 1,500 C-level and senior executives across buy-side, sell-side and insurance firms. The study asked executives of those firms to assess their organization’s capabilities across six key operational pillars. Based on their scores, FIS then further analysed those organizations ranking in the top 20% of the FIS Readiness scoring system. Classified as ‘Readiness Leaders,’ the top 20% were studied to see how their investment priorities differ from their peers and how that impacts their growth.
Readiness Leaders Outperform Peers
The research found that of the six operational pillars, firms’ digital innovation strategies have the most discernible link with stronger revenue growth, followed by automation and emerging technology. However digital innovation strategy ranked just 5.5 out of 10 on FIS’ index for performance, which highlights the weakest performance scores across the industry today.
Among the findings of the FIS 2018 ‘Pursuit for Growth’ report:
- Readiness Leaders achieved average revenue growth of 3.88% over the past 12 months, compared with 2.12% growth for the rest of the industry.
- 80% of Readiness Leaders have fully or near fully automated key processes, versus 46% of the rest of the industry.
- Nearly two-fifths of all respondents (38 percent) say they want to significantly reduce the size of their owned IT infrastructure over the next 12 months.
Martin Boyd, Head of Institutional & Wholesale at FIS, said: “Our research shows that financial services firms can increase their abilities to accelerate their growth if they evolve their traditional operating model of data management, efficiency and risk management into one built on digital innovation, emerging technologies and advanced automation. Based upon our research, those firms that have been able to expand their focus and modernize their operating model should be well placed for success in the future.”
(Source: FIS)
Interactive Investor, the online investment platform, recently released its clients’ most traded investments, by number of trades, in August 2017.
Commenting on the results, Lee Wild, Head of Equity Strategy at Interactive Investor said: “Following an exhausting 2,000-point rally between February 2016 and the record high in June this year, equity markets have extended their pause for breath, moving largely sideways over the summer months.
“Both the FTSE 100 and broader FTSE All-Share index rose less than 1% in August, though North Korean sabre-rattling tested investors’ nerves. Concerns that Kim Jong-un could nuke Guam, the US west coast or anywhere in between began a rollercoaster ride through the month, as enthusiastic buyers took advantage of each sell-off.
“Mopping up underperformers like Barclays proved a popular trade. After falling 6% in August, Barclays shares haven’t been this cheap since November 2016.
“Trading at a discount to most domestic peers on several key multiples, Barclays gatecrashed the top five most-traded large-caps on the Interactive Investor platform as buyers outnumbered sellers by more than two-to-one.
“AstraZeneca’s popularity proved fleeting as bargain hunting following July’s crash dried up. Investors who bought heavily last month below £43 are busy counting profits, currently a healthy 8%.
“Perhaps the biggest story to pass under the radar in August was the AIM market’s break above 1,000 for the first time since summer 2008. It’s easily outperformed the other domestic indices in 2017 so far, rising 20% in the past eight months.
“There were big moves in August by some of the junior market’s biggest companies, among them Frontier Developments (67%), Plus500 (45%), Blue Prism (33%) and IQE (29%).
“It was IQE that piqued interest among investors in August, almost toppling UK Oil & Gas from top spot as trading volume on the Interactive Investor platform more than doubled.
“A rally, given fresh momentum by a bullish update in July, spilled over into August, pushing IQE shares to new highs. There’s real excitement here as market watchers speculate about the possibility its chip components feature in Apple’s new iPhone 8, due to be launched next week (12 September).
“Internet of Things (IoT) hopeful Telit Communications came from nowhere in August following a profits warnings and shock departure of its CEO. A subsequent plunge in the share price and extreme volatility made it a trader’s favourite.
“Overseas, trading volume for Apple doubled as the shares surged by 10% in August. Apple shares typically nudge higher ahead of major product launches and the unveiling of the iPhone 8 next week has pushed the share price to a record high.”
(Source: Interactive Investor)
