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RIYADH: ��������’s Tadawul All Share Index edged up on Thursday, gaining 70.12 points, or 0.65 percent, to close at 10,833.59.

The total trading turnover on the main index reached SR4.37 billion ($1.16 billion), with 174 stocks advancing and 74 declining.

The Kingdom’s parallel market Nomu gained 282.36 points to close at 26,615.66. The MSCI Tadawul Index edged up 0.72 percent to 1,401.67.

The best-performing stock on the main market was Thimar Development Holding Co., which jumped 10 percent to SR40.04. 

Saudi Industrial Development Co. rose 9.96 percent to SR33.12, while Saudi Printing and Packaging Co. gained 5.6 percent to SR12.63.

Elm Co. posted the sharpest drop, falling 3.40 percent to SR881. Theeb Rent a Car Co. declined 3.03 percent to SR62.35, Nice One Beauty Digital Marketing Co. dropped 2.62 percent to SR24.13, and Al Mawarid Manpower Co. decreased 2.59 percent to SR 128.1.

On the announcements front, Group Five Pipe Saudi Co. posted a substantial increase in its net profit for the first half of the year, supported by strong sales growth, the company said in a filing on Wednesday.

According to the firm’s financial disclosure on the Saudi Exchange, net profit for the six months ending June 30 reached SR125.18 million, a significant rise from SR9.2 million recorded during the same period in 2024. This marks a year-on-year jump of over 1,259 percent.

The increase in profit was primarily driven by volume growth and lower production costs.

Group Five Pipe Saudi Co.’s share price traded 29.95 percent higher to close at SR38.96.

National Signage Industrial Co., also known as Sign World, has set the price range for its initial public offering between SR12 and SR15 per share, according to a statement issued by Yaqeen Capital, the company’s financial adviser and lead manager.

The offering consists of 1.5 million ordinary shares, representing 20 percent of Sign World’s post-listing issued share capital. The entire stake is allocated to qualified investors as part of the book-building process.

Yaqeen Capital said the bidding and book-building period for qualified investors will commence on Aug. 17 and close on Aug. 24.

Qualified subscribers may apply for a minimum of 10 shares and up to a maximum of 374,990 shares.

RIYADH: The Islamic finance industry in the Association of Southeast Asian Nations is set to exceed $1 trillion in assets by the end of 2026, driven by Malaysia, Indonesia and Brunei and supported by closer Gulf ties, Fitch Ratings said. 

The bloc’s Islamic finance sector reached nearly $950 billion at the end of the first half of 2025, accounting for about a quarter of the global total, the agency said in a report. Demand remains uneven within ASEAN, with limited presence in Singapore, the Philippines and Thailand, and underdeveloped markets in Vietnam, Laos, Cambodia and Myanmar.  

ASEAN’s Islamic finance industry is expanding in line with global trends, with worldwide assets projected to reach $7.5 trillion by 2028, up from $5.5 trillion in 2024, according to Standard Chartered. 

In its latest report, Fitch stated: “Growth will continue to be led by Malaysia, Indonesia and Brunei due to their large Muslim populations, enabling regulations, access to sukuk, and potentially improving ties with Gulf Cooperation Council countries.” 

GCC investors already hold stakes in some Malaysian banks, while Gulf Islamic banks are key arrangers and investors in dollar sukuk issued in Malaysia, Indonesia and the Philippines — a pattern seen in markets such as the UK, Turkiye and Kazakhstan.   

Sukuk dominate 

ASEAN’s sukuk outstanding reached $475 billion by mid-2025, making up 16 percent of the region’s debt capital market.   

Malaysia and Indonesia lead the way, contributing nearly half, 47 percent, of the global sukuk market. “Sukuk outstanding represents 59 percent of Malaysia’s debt capital market and 18 percent in Indonesia,” Fitch highlighted.    

Environmental, social, and governance-linked sukuk are also concentrated in these two nations, while Singapore serves as a key listing hub for dollar-denominated sukuk.   

Banking and funds  

Malaysia remained ASEAN’s largest Islamic banking market, with assets totaling about $300 billion, representing 42 percent of total system financing.  

Indonesia followed with $56 billion in Islamic banking assets, though its market share remains modest at 7 percent. Brunei’s Islamic banks hold a dominant 63 percent of the country’s total banking assets.   

In the takaful sector, Malaysia’s family takaful accounts for 39 percent of the insurance market, while Brunei’s takaful penetration stands at 47.8 percent.  

The Philippines has taken steps to develop its Islamic finance ecosystem, issuing its first takaful operator licenses in 2024 and introducing guidelines for micro-takaful products.     

Regulatory gaps  

Recent high-level meetings have reinforced Islamic finance’s role in ASEAN’s economic strategy. The 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting in April emphasized its importance in sustainable and infrastructure financing.  

Meanwhile, the second ASEAN-GCC summit in May strengthened cross-border ties, with Fitch noting that “GCC Islamic banks are key investors and arrangers of dollar sukuk issued in Malaysia, Indonesia, and the Philippines.” 

Despite progress, regulatory frameworks remain absent in Vietnam, Myanmar, Laos, and Cambodia, limiting growth. However, with deepening GCC connections and strong fundamentals, Fitch expected ASEAN’s Islamic finance industry to maintain its upward trajectory.   

Fitch’s report aligns with S&P Global Ratings’ April assessment, which highlighted the Islamic finance industry’s rapid expansion in 2024, driven by robust growth in banking assets and sukuk issuances — particularly in foreign currencies.    

S&P projected that this momentum will continue in 2025, barring major macroeconomic disruptions, supported by stable oil prices and sustained financing needs from economic transformation programs.   

However, risks loom, including potential oil price declines and the possible adoption of Shariah Standard 62, which could reshape sukuk structures from debt-like to equity-like, potentially fragmenting the market and deterring fixed-income investors.     

The industry’s 10.6 percent asset growth in 2024 was heavily concentrated, with GCC countries — led by �������� — contributing 81 percent of Islamic banking expansion, fueled by Vision 2030 projects and deep market penetration.    

Meanwhile, Malaysia and Indonesia remained key sukuk hubs, though currency volatility in emerging markets like Turkiye and Egypt poses challenges. Global sukuk issuance is expected to reach $190–200 billion in 2025, with foreign currency issuances playing a pivotal role.   

Looking ahead, S&P emphasized that simplifying Islamic finance structures and leveraging fintech could enhance competitiveness, while sustainable sukuk, led by the Kingdom and Indonesia, presents a growing niche.   

Yet, the industry’s trajectory hinges on regulatory clarity, particularly around Standard 62, which could trigger a pre-emptive issuance surge before implementation.