With IdealRatings, a financial data provider specialising in Islamic finance solutions, Bloomberg has announced the launch of an Islamic/Sharia-compliant indicator for fixed income securities (Sukuk) on the Bloomberg Terminal.
This indicator, designed by IdealRatings to comply with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) guidelines, it shared, marks a “significant enhancement” in the tools available to investors for identifying Shariah-compliant securities.
IdealRatings plays a pivotal role in providing the newly launched Sukuk indicator to the Bloomberg Terminal, adhering to globally recognised AAOIFI standards.
IdealRatings’ process involves assigning a clear pass, fail, or restricted status to each Sukuk, strictly following AAOIFI’s principles.
The demand for Islamic fixed-income securities, notably Sukuk, from global investors has been growing, it noted.
According to Fitch Ratings, global Islamic Finance assets crossed $3.3 trillion in 2023, with strong growth expected in 2024.
The global Sukuk issuance for the second quarter of 2023 also rose by 10% in core Islamic finance markets across the Middle East, Africa, and South Asia, further highlighting the sector’s growth and potential.
Giuseppe Netti, Regional Head of Bloomberg, Middle East & Africa, commented: “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. 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. This collaboration further strengthens our commitment to delivering innovative solutions that meet the evolving needs of Bloomberg’s global client base.”