More banks in the United Arab Emirates are likely to issue Basel III-compliant bonds after the launch of the world’s first hybrid Tier 1 Sukuk from Abu Dhabi Islamic Bank (ADIB), Fitch Ratings said.
“We expect increasing Tier 1 issuance in 2013 by UAE and other GCC banks - both conventional and Shari’ah-compliant - to support further growth. In our view, relatively high levels of capital are necessary for GCC banks due to the difficult operating environment and the concentration of single names and sectors, particularly of real estate and government-related entities, in the loan portfolios. Any pick-up in loan growth by the banks would need to be supported by additional capital………………………………………..Full Article: Source