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MENA news through Aug. 28

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MENA news through Aug. 28

* Global issuance of Islamic bonds, or sukuk, is set to climb 6% to around $130 billion in 2019, according to Moody's. The rating agency said new entrants and green sukuk could also stimulate issuance.

* S&P Global Ratings said it believes convergence capital, or funds from nontraditional, third-party sources, will continue to play a key role in the competitive dynamics of the global reinsurance market and bolster capacity, even though the amount of such capital being provided to reinsurers globally fell for the first time in ten years.

GULF COOPERATION COUNCIL

* Saudi Stock Exchange (Tadawul) has completed the second and final phase of its inclusion on MSCI Inc.'s emerging markets index, CNBC reported. Al Jazira Capital, meanwhile, said it expects the Tadawul All Share Index to attract 20.2 billion riyals in inflows, Argaam reported.

* The Qatar Financial Centre Regulatory Authority fined First Abu Dhabi Bank PJSC 200 million Qatari riyals for obstructing its investigation into the bank's alleged manipulation of the currency, Qatari government securities and related financial instruments.

* S&P Global Ratings affirmed the A- long-term insurer financial strength and financial strength ratings of Kuwait-based Al Ahleia Insurance Co. S.A.K.P. The outlook remains negative.

* The Public Investment Fund of Saudi Arabia has finalized the terms of a $10 billion loan it aims to raise from several banks, insiders told Bloomberg News.

* Moody's said Emirates NBD Bank PJSC's collaboration with DIFC FinTech Hive, the Dubai International Financial Centre's fintech accelerator and hub, is credit positive for the lender because it will support its profitability, Gulf News reported.

* Abu Dhabi National Oil Company for Distribution PJSC said its shares have been certified as sharia compliant based on the recent screening assessment of The Unified Committee of Islamic Banks for Shari'a Screening of Equities – UAE, enabling brokerage arms of Islamic banks to trade the oil company's shares.

* Riyadh's commercial court has ordered the former managing director and CEO of the Medgulf Cooperative Insurance & Reinsurance Co. to pay the firm some 152.7 million Saudi Arabian riyals over a lawsuit the company filed, alleging the unnamed former executive unlawfully obtained money, Argaam reported.

* National Bank of Bahrain BSC said it is still in talks with Bahrain Islamic Bank BSC in relation to potentially making a voluntary takeover offer for the latter's issued shares.

* Saudi Arabia's Capital Market Authority approved boutique investment banking firm Ithraa Capital LLC's request to amend its business profile and cancel the activities of dealing as principal and underwriter and managing investment funds and discretionary portfolio.

REST OF MIDDLE EAST

* The Tel-Aviv Stock Exchange Ltd., which became a public company earlier in August after completing its IPO, reported unaudited second-quarter after-tax profit of 2.5 million Israeli shekels, down from 69.3 million shekels a year ago.

* The Bank of Israel said it will not raise its key interest rate, which it kept unchanged at 0.25%, for an "extended period" amid a downward shift in the inflation environment and a strengthening currency.

* The Central Bank of Egypt lowered its key rates by 150 basis points as inflation weakened to its lowest since 2015. The regulator cut the overnight deposit rate to 14.25%, the overnight lending rate to 15.25%, the rate of the main operation to 14.75% and the discount rate to 14.75%.

* Banque Misr (SAE) Chairperson Mohamed El-Etreby and National Bank of Kuwait - Egypt (SAE) Chairperson Hisham Okasha said the Egyptian central bank's decision to cut deposit and lending rates by 1.5% will boost investments and reduce the country's budget deficit, Daily News Egypt reported.

* Bank Leumi le-Israel BM appointed Hanan Friedman president and CEO, replacing Rakefet Russak Aminoach, who announced her retirement in June.

* Bank Hapoalim BM CFO Ofer Koren has informed the Israeli lender of his intention to resign in the coming months, Reuters reported. Meanwhile, the news agency said Dov Kotler, who was appointed CEO of the lender in July, is expected to begin in his new role Oct. 1.

* Lebanese Finance Minister Ali Hassan Khalil said the government will "deal responsibly" with Fitch's and S&P Global Ratings' reports, which showed the urgent need for reform to help Lebanon overcome its worsening economic crisis, Reuters reported.

* IDB Development has received a binding offer to acquire up to 26% of shares in Clal Insurance Enterprises Holdings Ltd. on better terms from four underwriters after it rejected a lower initial offer from the same group, Globes reported.

* Iranian President Hassan Rouhani has sent a bill to parliament that would cheapen the Iranian rial by slashing four zeroes off its value as the country grapples with rising inflation amid tough sanctions by the U.S., Amwal Al Ghad reported.

* The Egyptian finance ministry is reconsidering the issuance of Egyptian pound-denominated bonds, which could take place by early 2020 depending on market conditions, Mubasher reported, citing Enterprise.

NORTH AFRICA

* Sudan has sworn in economist Abdalla Hamdok as its new prime minister to lead a transitional government that came about following mass protests that led to the ousting of Omar al-Bashir as president, Reuters and BBC News reported. Al-Bashir's trial over charges of money laundering and corruption was adjourned for one week after several witnesses testified regarding the charges, Bloomberg News reported.

* Sudanese Prime Minister Abdalla Hamdok said the country will need $8 billion in foreign aid over the next two years to help pay for its import bills and restore trust in its local currency, Bloomberg reported, citing Al Arabiya Television.

* Capital Intelligence Ratings affirmed Société Générale Marocaine de Banques long- and short-term foreign-currency ratings at BBB-/A3 and assigned the Moroccan lender a bank stand-alone rating of "bb+", with stable outlooks on the long-term foreign-currency and bank stand-alone ratings.

* The U.S. will grant Tunisia $335 million in financial aid over five years to support the North African country's democracy, Reuters reported.

Henni Abdelghani, Pádraig Belton and Mariana Aldano contributed to this report.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.