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Bloomberg, IdealRatings launch Sharia-aligned Sukuk indicator

Bloomberg, IdealRatings launch Sharia-aligned Sukuk indicator
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Mubasher: Bloomberg and IdealRatings have jointly launched Islamic Sharia-compliant indicator for Sukuk on the Bloomberg Terminal to meet the increasing demand for Islamic fixed-income securities from global investors, according to a press release.

IdealRatings, which is a financial data provider specialising in Islamic finance solutions, designed the Sukuk indicator to comply with the guidelines of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

According to Fitch Ratings, global Islamic finance assets totalled more than $3.30 trillion in 2023, amid strong growth expectations for 2024.

Furthermore, the ratings agency said that global Sukuk issuance increased by 10% in core Islamic finance markets during the second quarter (Q2) of 2023 across the Middle East, Africa, and South Asia.

Regional Head of Bloomberg, Middle East and Africa, Giuseppe Netti, said: "This launch represents a milestone in our commitment to developing sophisticated tools for Islamic finance. Our long-standing relationship with IdealRatings reflects our dedication to innovation and our ongoing effort to meet the diverse needs of global investors.”

For the indicator which is currently available on the Bloomberg Terminal to customers worldwide, IdealRatings will be responsible for assigning a clear pass, fail, or restricted status to each Sukuk while strictly following AAOIFI’s principles. This contribution of the financial data provider enhances Bloomberg Terminal’s capabilities in Islamic finance.

Netti added: “The Islamic/Sharia-compliant indicator will empower investors with robust data and analytics, crucial for informed decision-making in the dynamic Islamic financial landscape."

Mohamed Donia, CEO of IdealRatings, said: “The Bloomberg Sukuk indicator initiative represents a significant step forward in providing the industry with comprehensive and reliable data on Shariah-compliant fixed income securities.”

Donia concluded: “This collaboration further strengthens our commitment to delivering innovative solutions that meet the evolving needs of Bloomberg’s global client base."