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Since Dubai first announced its intention to become the capital of the Islamic economy, much progress has been made. The key pillars of Islamic finance have each developed in different ways, but Sukuk may be the pillar that shines the most brightly. This was exemplified in the first quarter of 2017, with Nasdaq Dubai seeing some marquee listings pop up one after another.
Global Sukuk issuance reached $72.9 billion globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than $2 trillion, and thus far, 2017 has continued that momentum.
February saw the announcement of Dubai Islamic Bank (DIB)’s latest $1 billion Sukuk, for which Mohamed Abdulla Al Nahdi, Deputy Chief Executive of DIB, rang the bell on 1 March. The bell-ringing took place in the presence of Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, Hamed Ali, Chief Executive of Nasdaq Dubai, and senior Nasdaq Dubai and DIB executives.
The listing, carried out under DIB’ $5 billion Sukuk Programme, was the largest senior Sukuk issuance by a financial institution globally. It brings the total value of DIB’s current Sukuk listings on Nasdaq Dubai to $4.25 billion, more than any other UAE issuer.
DIB, UAE’s largest Islamic bank, often leads the way in the emirate’s Islamic economy. This issuance carries the additional accolade of being the largest ever such transaction by an Islamic bank in the history of Islamic capital markets.
“As a leading Islamic bank, we are committed to promoting successful Shari’ah-compliant financing solutions that support economic development in Dubai and the growth of its Islamic finance infrastructure. Nasdaq Dubai not only provides us with excellent links to investors both regionally and globally but also strong visibility in the marketplace with a well-regulated listing platform,” Dr. Adnan Chilwan, Group CEO, DIB said.
The DIB Sukuk listing, which took place on 15 February 2017, raises the total value of all Sukuk listed on Nasdaq Dubai to $45.06 billion, further strengthening the exchange’s position as the world’s largest exchange for Sukuk listings by value.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, echoed the importance of that relationship. “DIB is one of the key issuers on Nasdaq Dubai and our close relationship supports Dubai’s growth as the global Capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai. We are working to further strengthen our relationship with DIB as well as other regional and global Islamic finance institutions.”
“As we prepare for further growth in the Sukuk sector regionally and globally, Nasdaq Dubai will constantly enhance its listing processes and links to investors. We aim to provide issuers with maximum flexibility and streamlined procedures before listing, as well as efficient post-listing infrastructure and visibility,” Hamed Ali, Chief Executive of Nasdaq Dubai, said.
DIB’s earlier Sukuk listings on Nasdaq Dubai comprise a $1 billion listing in 2013, two listings in 2015 respectively of $750 million and $1 billion.
SOVEREIGN LISTINGS REACH LANDMARK
Soon after DIB’s landmark Sukuk issuance, Nasdaq Dubai welcomed the listing of a $1 billion Sukuk issued by the Government of Hong Kong on 1 March.
The move was hinted at exclusively to Islamic Business & Finance early in 2016 on the sidelines of the Asian Financial Forum, where Hong Kong reaffirmed its commitment to Islamic finance and its instruments to this publication and offered the possibility of more issuance to come.
The listing brings the total value of Hong Kong Government Sukuk listed on the Middle East’s international financial exchange to $3 billion, following two listings of $1 billion each in 2014 and 2015.
The move strengthened Dubai’s position as the world’s largest venue for Sukuk listings by value, raising the total listed in the emirate to $48.81, which has come from a wide range of government, multilateral and corporate issuers across the MENA region and East Asia.
Soon after, the Government of Indonesia listed two Sukuk with a total value of $3 billion on Nasdaq Dubai. This move was most significant as it raised the total nominal value of all Sukuk listed in Dubai above $50 billion for the first time, to a global record high of $52.06 billion.
The Indonesian government is the largest issuer on the exchange, with a total value of $11.5 billion from eight listings. Other leading issuers include Saudi-based Islamic Development Bank with $8.5 billion and the aformentioned Government of Hong Kong with $3 billion.
“The channelling of Sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world. By pooling our knowhow and respective traditions, we are creating a more dynamic global industry that better meets the commercial and social needs of everyone who seeks the growth and development of Shari’ah-compliant finance,” said Dr. Robert Pakpahan, Director General of Budget Financing and Risk Management, Ministry of Finance–Republic of Indonesia.
“The rapid expansion of Dubai’s Sukuk market is based on intellectual as well as financial input from a wide range of issuers, investors and market participants based in dozens of countries. There is a common desire to come together to achieve new standards of excellence and efficiency and Dubai will further strengthen its role as a facilitator of this process,” Hamed Ali, Chief Executive of Nasdaq Dubai, said.
Indonesia’s latest Sukuk listings comprise one issuance of $2 billion and another of $1 billion.
LARGEST ISSUER PUSHES HIGHER
In mid-April, Nasdaq Dubai welcomed a listing of a $1.25 billion Sukuk issued by the Islamic Development Bank (IDB), the eight Sukuk listing on the exchange by IDB. The move made IDB one of the largest Sukuk issuers by value on Nasdaq Dubai at $9.8 billion. Based in Saudi Arabia, the IDB has 57 member countries and its activities are designed to foster their economic development and social progress.
According to Nasdaq Dubai, the reason for the continued relationship is that it provides the IDB and its other regional and international issuers with close links to investors around the world as well as a first-class listing infrastructure.
The move pushed Nasdaq Dubai’s record even higher. Dubai’s Sukuk listings have now reached a total nominal value of $53.31 billion, the highest total of any listing venue in the world.
Nasdaq Dubai’s further activities to promote the expansion of the Sukuk sector include working with the government of Tunisia to create a framework there for developing Sukuk financing. The exchange together with IdealRatings launched benchmark indices that track the performance of global Sukuk in October 2016.
© Islamic Business & Finance 2017
Global Sukuk issuance reached $72.9 billion globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than $2 trillion, and thus far, 2017 has continued that momentum.
February saw the announcement of Dubai Islamic Bank (DIB)’s latest $1 billion Sukuk, for which Mohamed Abdulla Al Nahdi, Deputy Chief Executive of DIB, rang the bell on 1 March. The bell-ringing took place in the presence of Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, Hamed Ali, Chief Executive of Nasdaq Dubai, and senior Nasdaq Dubai and DIB executives.
The listing, carried out under DIB’ $5 billion Sukuk Programme, was the largest senior Sukuk issuance by a financial institution globally. It brings the total value of DIB’s current Sukuk listings on Nasdaq Dubai to $4.25 billion, more than any other UAE issuer.
DIB, UAE’s largest Islamic bank, often leads the way in the emirate’s Islamic economy. This issuance carries the additional accolade of being the largest ever such transaction by an Islamic bank in the history of Islamic capital markets.
“As a leading Islamic bank, we are committed to promoting successful Shari’ah-compliant financing solutions that support economic development in Dubai and the growth of its Islamic finance infrastructure. Nasdaq Dubai not only provides us with excellent links to investors both regionally and globally but also strong visibility in the marketplace with a well-regulated listing platform,” Dr. Adnan Chilwan, Group CEO, DIB said.
The DIB Sukuk listing, which took place on 15 February 2017, raises the total value of all Sukuk listed on Nasdaq Dubai to $45.06 billion, further strengthening the exchange’s position as the world’s largest exchange for Sukuk listings by value.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, echoed the importance of that relationship. “DIB is one of the key issuers on Nasdaq Dubai and our close relationship supports Dubai’s growth as the global Capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai. We are working to further strengthen our relationship with DIB as well as other regional and global Islamic finance institutions.”
“As we prepare for further growth in the Sukuk sector regionally and globally, Nasdaq Dubai will constantly enhance its listing processes and links to investors. We aim to provide issuers with maximum flexibility and streamlined procedures before listing, as well as efficient post-listing infrastructure and visibility,” Hamed Ali, Chief Executive of Nasdaq Dubai, said.
DIB’s earlier Sukuk listings on Nasdaq Dubai comprise a $1 billion listing in 2013, two listings in 2015 respectively of $750 million and $1 billion.
SOVEREIGN LISTINGS REACH LANDMARK
Soon after DIB’s landmark Sukuk issuance, Nasdaq Dubai welcomed the listing of a $1 billion Sukuk issued by the Government of Hong Kong on 1 March.
The move was hinted at exclusively to Islamic Business & Finance early in 2016 on the sidelines of the Asian Financial Forum, where Hong Kong reaffirmed its commitment to Islamic finance and its instruments to this publication and offered the possibility of more issuance to come.
The listing brings the total value of Hong Kong Government Sukuk listed on the Middle East’s international financial exchange to $3 billion, following two listings of $1 billion each in 2014 and 2015.
The move strengthened Dubai’s position as the world’s largest venue for Sukuk listings by value, raising the total listed in the emirate to $48.81, which has come from a wide range of government, multilateral and corporate issuers across the MENA region and East Asia.
Soon after, the Government of Indonesia listed two Sukuk with a total value of $3 billion on Nasdaq Dubai. This move was most significant as it raised the total nominal value of all Sukuk listed in Dubai above $50 billion for the first time, to a global record high of $52.06 billion.
The Indonesian government is the largest issuer on the exchange, with a total value of $11.5 billion from eight listings. Other leading issuers include Saudi-based Islamic Development Bank with $8.5 billion and the aformentioned Government of Hong Kong with $3 billion.
“The channelling of Sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world. By pooling our knowhow and respective traditions, we are creating a more dynamic global industry that better meets the commercial and social needs of everyone who seeks the growth and development of Shari’ah-compliant finance,” said Dr. Robert Pakpahan, Director General of Budget Financing and Risk Management, Ministry of Finance–Republic of Indonesia.
“The rapid expansion of Dubai’s Sukuk market is based on intellectual as well as financial input from a wide range of issuers, investors and market participants based in dozens of countries. There is a common desire to come together to achieve new standards of excellence and efficiency and Dubai will further strengthen its role as a facilitator of this process,” Hamed Ali, Chief Executive of Nasdaq Dubai, said.
Indonesia’s latest Sukuk listings comprise one issuance of $2 billion and another of $1 billion.
LARGEST ISSUER PUSHES HIGHER
In mid-April, Nasdaq Dubai welcomed a listing of a $1.25 billion Sukuk issued by the Islamic Development Bank (IDB), the eight Sukuk listing on the exchange by IDB. The move made IDB one of the largest Sukuk issuers by value on Nasdaq Dubai at $9.8 billion. Based in Saudi Arabia, the IDB has 57 member countries and its activities are designed to foster their economic development and social progress.
According to Nasdaq Dubai, the reason for the continued relationship is that it provides the IDB and its other regional and international issuers with close links to investors around the world as well as a first-class listing infrastructure.
The move pushed Nasdaq Dubai’s record even higher. Dubai’s Sukuk listings have now reached a total nominal value of $53.31 billion, the highest total of any listing venue in the world.
Nasdaq Dubai’s further activities to promote the expansion of the Sukuk sector include working with the government of Tunisia to create a framework there for developing Sukuk financing. The exchange together with IdealRatings launched benchmark indices that track the performance of global Sukuk in October 2016.
© Islamic Business & Finance 2017
