Weekly Rundown

Weekly Bulletin - Sky Option

Welcome to the Sky Option’s Weekly Bulletin, your go-to source for a concise overview of the latest market activities in the stock trading services industry.?

Join us as we dive into the significant developments and trends that shaped the past week, providing you with valuable insights to navigate the dynamic world of stock trading.

More T-Sukuks to Enter the Markets Soon

T-Sukuk are Emirati Dirham-denominated Sharia-compliant financial instruments issued by the UAE government. It is a bond-like financial instrument that allows investors (local and global) to invest in the local market to strengthen the Islamic economy.

These Islamic treasury sukuks will strengthen the country’s financial system and position as a global financial hub, demonstrating confidence in its ability to develop the financial sector.

The T-Sukuk are issued in different tenures such as 2, 3, or 5 years initially followed by a 10-year sukuk later denominated in UAE dirhams to develop the local bonds debt market and the mid-term yield curve.?

The benchmark auction size for these T-sukuks was AED 1.1 billion against which the subscriptions received were 7 times more. Considering the demand and to develop the local capital market, UAE is going to launch more treasury sukuks.

UAE Gold Price Movements

Here’s the gold price history for the past week.?

Measures to Ease Burden of Interest Rate Hikes on Residential Real Estate Loans for UAE Nationals

The Central Bank of the UAE (CBUAE) has notified all banks and finance companies in UAE of steps to ease the impact of rising interest rates on residential real estate loans for Emirati nationals.

Starting July 1, 2023, Emirati nationals' residential real estate loans will be subject to new regulations. These regulations apply to all loans, including those with increased Debt Burden Ratios (DBRs), where banks only defer interest payments after repayment.?

Banks can now increase the deduction rate from the salary or income to 60% for customers with a monthly income of AED 40,000 or more, as long as they cover the increase in interest rates for loans with increased DBRs without deferring any interest payments until after repayment.?

For customers with a monthly income of less than AED 40,000, banks can extend the repayment period by up to 30 years to accommodate increased interest rates. The deduction percentage of 50% remains unchanged. The banks will absorb any remaining interest not covered by the deduction.?

CBUAE approved measures to ease higher interest rates on real estate loans for UAE nationals, after a study with several banks and the UAE Banks Federation.

Weekly Gainers and Losers (DFM)

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