Al Rajhi Capital to Launch Global Sukuk Fund Offering
Funding | Jan 28, 2025 | Zawya
Saudi Arabia’s Al Rajhi Capital is set to pioneer a global sukuk fund, having received approval from the Capital Market Authority for its public offering. The sukuk market is anticipated to maintain robust growth, with S&P Global Ratings projecting issuance levels to hit between $190 billion and $200 billion by 2025. Al Rajhi Capital’s initiative comes on the back of a fruitful preceding year which saw $193.4 billion in sukuk issuances globally. Notably, the issuance from the GCC regions, primarily led by Saudi Arabia, experienced a significant surge, driven by foreign-currency issuances which soared by 29%, totaling $72.7 billion. The firm’s strategic move to enter this vibrant market underpins its ambition to capitalize on the growing appetite for Islamic finance solutions across various market landscapes including Malaysia and Indonesia.
Sectors
- Islamic Finance
- Capital Markets
Geography
- Saudi Arabia – The main participant, Al Rajhi Capital, is based in Saudi Arabia, and the country's leading role in the issuance of sukuks is emphasized.
- GCC – The Gulf Cooperation Council (GCC) regions, including Saudi Arabia, play a pivotal role in the foreign-currency issuance aspect of sukuk as mentioned in the article.
- Malaysia – Malaysia, along with Indonesia, is highlighted as a key market for sukuk issuance, indicating its geographical relevance.
- Indonesia – Indonesia is identified as a significant market for sukuk issuances, supporting the geographic diversity of the article's focus.
Industry
- Islamic Finance – The article focuses on the sukuk, a form of Islamic finance, which follows Sharia principles and is an integral part of the financial offerings of Al Rajhi Capital.
- Capital Markets – The public offering of the sukuk fund involves activities in the capital markets, highlighting the role of Al Rajhi Capital in facilitating access to the sukuk market.
Financials
- $190 billion to $200 billion – Projected sukuk issuance for the year 2025 according to S&P Global Ratings.
- $193.4 billion – Total sukuk issuance amounted last year.
- $72.7 billion – Foreign-currency sukuk issuance by GCC countries as of the end of the last year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Al Rajhi Capital | Investment Firm | Companies | A Saudi-based investment firm planning to launch a global sukuk fund. |
| Capital Market Authority (CMA) | Regulatory Authority | Government | The Saudi regulatory body approving the public offering of Al Rajhi’s sukuk fund. |
| S&P Global Ratings | Ratings Agency | Companies | A global agency providing projections and data on the sukuk market. |
| GCC countries | Issuers | Government | Countries in the Gulf Cooperation Council involved in sukuk issuance. |