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    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt secures $66 mln from EU, AFD to expand wheat storage

    Egypt secures $66 mln from EU, AFD to expand wheat storage

    Agreements signed to establish 4 food factories in Jordan

    Agreements signed to establish 4 food factories in Jordan

    Morocco set to launch potash project: report

    Morocco set to launch potash project: report

    Food Africa and pacprocess MEA to launch in December with an even larger area

    Food Africa and pacprocess MEA to launch in December with an even larger area

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

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      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

      Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

      International investors keen on entering Saudi market, says minister

      International investors keen on entering Saudi market, says minister

      Egypt aims to enhance contribution of IT sector to GDP: Talaat

      Egypt aims to enhance contribution of IT sector to GDP: Talaat

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      Saudi airports witness 42% rise in passengers in first 4 months of 2023

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      Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

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      Oman gears up for its first smart city

      Oman gears up for its first smart city

      Saudi real estate ‘booming’ on big office space demand

      Saudi real estate ‘booming’ on big office space demand

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      Value of Saudi construction contracts jump 35% to $51.3bn: report

      Qatar to implement new strategies for real estate development

      Qatar to implement new strategies for real estate development

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      Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

      Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

      Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

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        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Egypt invests $64mln in electricity network development in South Sinai since July 2014

        Egypt invests $64mln in electricity network development in South Sinai since July 2014

        First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

        First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

        Oman’s refinery products output jumps by 44%

        Oman’s refinery products output jumps by 44%

        Iraq agrees to 30% stake in TotalEnergies $27bln energy project

        Iraq agrees to 30% stake in TotalEnergies $27bln energy project

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        Oman signs $20bn hydrogen deals

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          Qatar: Over 700 hotel keys added in Q1

          Qatar: Over 700 hotel keys added in Q1

          Jordan’s tourism income surges 88% as visitors flock to the country

          Jordan’s tourism income surges 88% as visitors flock to the country

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

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          Leisure sector in Qatar stronger after World Cup 2022

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

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        • Agrofood
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          • Agriculture
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          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt secures $66 mln from EU, AFD to expand wheat storage

          Egypt secures $66 mln from EU, AFD to expand wheat storage

          Agreements signed to establish 4 food factories in Jordan

          Agreements signed to establish 4 food factories in Jordan

          Morocco set to launch potash project: report

          Morocco set to launch potash project: report

          Food Africa and pacprocess MEA to launch in December with an even larger area

          Food Africa and pacprocess MEA to launch in December with an even larger area

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Trending Tags

          • Business & Economy
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            • Business
            • Economy
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            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

            Qatar’s non-oil sector achieved 9.9% growth in Q4 2022: Prime Minister

            International investors keen on entering Saudi market, says minister

            International investors keen on entering Saudi market, says minister

            Egypt aims to enhance contribution of IT sector to GDP: Talaat

            Egypt aims to enhance contribution of IT sector to GDP: Talaat

            Saudi airports witness 42% rise in passengers in first 4 months of 2023

            Saudi airports witness 42% rise in passengers in first 4 months of 2023

            Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

            Oman’s annual inflation rate eases to 1.1% in April, lowest since March 2021

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman gears up for its first smart city

            Oman gears up for its first smart city

            Saudi real estate ‘booming’ on big office space demand

            Saudi real estate ‘booming’ on big office space demand

            Value of Saudi construction contracts jump 35% to $51.3bn: report

            Value of Saudi construction contracts jump 35% to $51.3bn: report

            Qatar to implement new strategies for real estate development

            Qatar to implement new strategies for real estate development

            Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

            Real Estate Development Fund deposits $248m in Sakani accounts to boost Saudi housing goals

            Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

            Sharjah records 21,486 real estate transactions worth Dh5.9 billion in Q1 2023

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Egypt invests $64mln in electricity network development in South Sinai since July 2014

              Egypt invests $64mln in electricity network development in South Sinai since July 2014

              First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

              First accredited low-carbon ammonia shipment dispatched from Saudi Arabia to Japan

              Oman’s refinery products output jumps by 44%

              Oman’s refinery products output jumps by 44%

              Iraq agrees to 30% stake in TotalEnergies $27bln energy project

              Iraq agrees to 30% stake in TotalEnergies $27bln energy project

              Oman signs $20bn hydrogen deals

              Oman signs $20bn hydrogen deals

              Trending Tags

              • Hospitality
                Qatar: Over 700 hotel keys added in Q1

                Qatar: Over 700 hotel keys added in Q1

                Jordan’s tourism income surges 88% as visitors flock to the country

                Jordan’s tourism income surges 88% as visitors flock to the country

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Leisure sector in Qatar stronger after World Cup 2022

                Leisure sector in Qatar stronger after World Cup 2022

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

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              Jordan looks to sukuk to bolster financial toolkit

              OBG

              November 24, 2016
              in Economy, Finance
              0
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              Building on recent growth in Islamic finance, Jordan is expanding its funding options and tapping a rising market through the issuance of sukuk (Islamic bonds).

              Two issuances
              This year the Central Bank of Jordan (CBJ) issued two rounds of sharia-compliant sovereign bonds for the first time in the country’s history.
               
              The first offering, released in May, used a murabaha (cost-plus financing) structure and was valued at JD75m ($105.7m). The sale successfully attracted JD205m ($289m) in bids from investors at a coverage ratio of 2.73. Meanwhile, the second sukuk, issued in mid-October, used an ijara (leasing) structure and was valued at JD34m ($47.9m). The latter sale was more than three times oversubscribed.

              The bonds have a five-year maturity, with expected profit rates of 3.5% and 3.01%, respectively.

              While both issues have been termed sovereign, the May sukuk – which was designed to provide liquidity to finance the operations of two government-owned companies, the National Electric Power Company and the Water Authority of Jordan – is backed by the utility companies rather than the government, whereas the October issue – which will be used by the Ministry of Finance (MoF) – is guaranteed by the government.

              The sales were accompanied by a move in September, when the government signed an agreement with the International Islamic Trade Finance Corporation to finance basic imports with sharia-compliant funds.

              The Jordanian government expects net domestic borrowing will reach approximately JD896m ($1.26bn) this year, according to press reports.

              Market snapshot
              The recent sukuk offerings are part of a broadening of Jordan’s Islamic financial services industry in the past couple of years.

              At the end of July last year the Governorate Development Fund (GDF) – which was established in 2011 to finance small and medium-sized projects, as well as entrepreneurial initiatives – partnered with the Hajj Fund to offer sharia-compliant financing options.

              The GDF plans to use a variety of Islamic financial structures, such as murabaha, ijara and istisnah, to fund industrial and service projects that aim to increase employment in the country.

              Last year also saw the Jordan Dubai Islamic Bank (JDIB) launch sharia-compliant investment certificates of deposit, the first to be offered by an Islamic financial institution in Jordan.

              Earlier this year flagship carrier Royal Jordanian finalized a $275m, five-year loan facility, which will be partially funded through Islamic financing, to pay down its incurred debt and restructure the company.

              Strong foundations
              Islamic finance is not new to Jordan, with local lenders Jordan Islamic Bank (JIB) and the Islamic International Arab Bank operating in the country since the 1970s and 1990s, respectively.

              Yet, while Jordan introduced a framework for the sector as early as 1978, with the implementation of the Jordan Islamic Bank for Finance and Investment Act No. 13, it was not until more recently that the government began to proactively encourage the burgeoning industry.

              Last year the CBJ took another regulatory step, issuing the Corporate Governance for Islamic Banks Instructions No. 61, which aim to increase accountability and transparency among Islamic financial institutions.

              The Islamic finance industry in Jordan, though small, has been steadily growing since 2010, when JDIB – established by the Dubai Islamic Bank and its partner Jordan Dubai Capital – began its operations. One year later local company Al Rajhi Cement offered Jordan’s first sukuk, a seven-year, JD85m ($119.6m) issue.

              In 2012 Parliament passed the Islamic Finance Sukuk Law, enabling both private and public entities to issue sukuk in dinars and foreign currency. The long-awaited legislation had been in development since 2010.

              Building on this, in April 2014 the government passed new by-laws specifying the structure and transfer framework for issuance of sukuk. This was followed in July of that year by the Jordan Securities Commission’s introduction of rules allowing the issuance of sharia-compliant debt.

              Future growth
              The legislation has helped the Islamic financial sector bolster the country’s debt market.

              In May local real estate developer Al Tajamouat for Touristic Projects, also known as Taj Mall, sought to shore up its finances, with the JDIB and investment bank JordInvest jointly issuing JD45m ($63.6m) worth of sukuk on behalf of the company.

              Meanwhile, the government has introduced proposals to further develop Jordan’s Islamic financial services industry.

              In a bid to make sukuk available at the retail level, the MoF commissioned the establishment of the Islamic Corporation for the Development of the Private Sector last year with the objective of providing sukuk-related technical help to private sector companies.

              Signalling future growth, in September the Economic Policy Council – a 15-member body chaired by King Abdullah II – proposed to expand the targeted sukuk market to individuals, as well as create a JD150m ($212m) private equity fund, to be partially financed by Islamic banks.
              Oxford Business Group
              24 November

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