Al Rajhi Capital to Launch Public Offering for Global Sukuk Fund
Funding | Jan 28, 2025 | Zawya
Saudi Arabian investment company Al Rajhi Capital is moving forward with the launch of a new global sukuk fund, following approval from the Capital Market Authority (CMA). This development is timed with the promising outlook for the sukuk market, which is predicted to enjoy robust issuance of $190 billion to $200 billion by 2025. Last year's sukuk issuance reached $193.4 billion, with a notable 29% uptick in foreign currency issuance attributed to Gulf Cooperation Council (GCC) countries, especially Saudi Arabia, and Southeast Asian countries like Malaysia and Indonesia. This venture marks a significant stride in Al Rajhi Capital's strategy in the Islamic financial instruments market.
Sectors
- Islamic Finance
- Investment Banking
- Capital Markets
Geography
- Saudi Arabia – This is the home country of Al Rajhi Capital, the company launching the sukuk fund.
- Global – The sukuk fund being launched is intended to be a global offering, showing the article's international scope.
- Malaysia – This country is mentioned as one of the significant sukuk issuers, alongside Saudi Arabia and Indonesia.
Industry
- Islamic Finance – The article discusses an investment in a sukuk fund, which is a financial certificate similar to a bond in Islamic finance.
- Investment Banking – This sector is involved due to the public offering of a financial product by Al Rajhi Capital, an investment firm.
- Capital Markets – The article mentions the approval from the Capital Market Authority, indicating participation in capital market activities.
Financials
- $193.4 billion – Total sukuk issuance last year.
- $72.7 billion – Foreign-currency sukuk issuance amount.
- $190 billion to $200 billion – Projected sukuk issuance by 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Al Rajhi Capital | Fund Issuer | Company | A Saudi Arabian investment firm launching a global sukuk fund. |
| Capital Market Authority (CMA) | Regulator | Government | Saudi Arabian authority that approved Al Rajhi Capital's sukuk fund. |
| S&P Global Ratings | Rating Agency | Company | Provided data and analysis on last year's sukuk issuance and market trends. |