Dubai's Islamic Development Bank to release $37 billion in sukkuks on Nasdaq

Published November 3rd, 2013 - 08:31 GMT
The announcement was made at the World Islamic Economic Forum being held in London.
The announcement was made at the World Islamic Economic Forum being held in London.

The Islamic Development Bank move to list Dh37b sukuk on Nasdaq Dubai gives fillip to Islamic economy hub drive. 

The Islamic Development Bank (IDB) has announced that it intends to list Dh37 billion sukuk programme on Nasdaq Dubai, the region’s international exchange.

The announcement was made at the World Islamic Economic Forum being held in London.

The move represents a momentous addition to the constant successes of ‘Dubai the Capital of Islamic Economy’ initiative, as it increasingly attracts new strategic partners from local, regional and international institutions.

The IDB, which provides project financing for its 56-member countries, has expanded its sukuk programme to Dh37 billion from Dh24 billion previously, as it increases its financial support for economic and social development.

Mohammed Abdullah Al Gergawi, Chairman of the Executive Office of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and Chairman of the Higher Committee for Development of the Islamic Economy sector, said: “The significant success of the ‘Dubai the Capital of Islamic Economy’ initiative within a short period of time since it was launched, stems from the innovative vision of Shaikh Mohammed bin Rashid, as well as the supervision and directives by Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, to provide local, regional and international strategic partners with all necessary requirements to tap the sophisticated infrastructure and regulatory environment available in the UAE.”

Welcoming this significant development, Al Gergawi went on to say that the UAE, as a prominent member state of the IDB, is in an excellent position to provide a supportive and appreciative environment for the bank’s financing needs and activities. “We are confident that the continuing growth of Islamic finance sector in the UAE, as Dubai further builds up its expertise and capacity in Islamic financing solutions will make an increasingly valuable contribution to economic development and the well-being of communities in the UAE, the region and internationally,” he concluded.

Dr Ahmad Mohamed Ali Al Madani, president of the IDB, said: “As the IDB plans a significant expansion of its activities, Dubai’s world-class exchange and regulatory architecture together with its commitment to providing Islamic finance solutions of the highest quality make it a natural home for our securities.”

“Supported by sukuk listings on Nasdaq Dubai, as the international financial exchange based in the region, the IDB is well-placed to finance its activities in sectors ranging from energy to transportation and agriculture to health and education across the Islamic world,” he added.

Essa Kazim, chairman of Dubai Financial Market and secretary-general of the Higher Committee, said: “Dubai’s rapid expansion as a centre for sukuk, with new listings valued at more than $6 billion so far in 2013, reflects its commitment to the ‘Dubai, the global sukuk centre’ initiative launched in February this year. As sukuk issuance expands worldwide, we look forward to further listings from the private and public sectors as well as multilateral organisations.”

It is noteworthy that Dubai capital markets have successfully attracted sukuk issues of Dh46 billion since the launch of Dubai, the global sukuk centre’ by Shaikh Mohammed bin Rashid Al Maktoum, and this number is expected to reach Dh60 billion by year end.

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