Dubai Islamic Economy Development Centre Collaborates With Nasdaq Dubai to Develop New Initiatives
Dubai Islamic Economy Development Centre (DIEDC) today announced its collaboration with Nasdaq Dubai to design and implement new initiatives that complement Dubai’s success in emerging as a leading global sukuk-listing hub.
The announcement was made at a session to present updates on the Dubai Global Sukuk Centre initiative to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. DIEDC outlined plans for developing the sukuk market and increasing sukuk issuances and listings in Dubai in order to boost economic growth.
The session was attended by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and First Deputy Chairman of the Dubai Executive Council, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman and CEO of Emirates Group, as well as a number of directors at government entities and departments in Dubai.
A key objective of the ‘Dubai: Capital of Islamic Economy’ initiative that was launched in 2013 was achieved when Dubai was globally ranked in the first place over other global capitals as the largest platform worldwide for attracting and listing Islamic sukuk.
Building on the momentum set thus far, the joint efforts of DIEDC and Nasdaq Dubai will bring forward new product propositions. More specifically, the synergy will introduce retail instruments that allow individuals to invest in the sukuk market in a bid to expand the investor base while providing diverse investment options. In addition, both entities will provide the required technical support to facilitate the process of issuing and listing sukuk and seek to attract new stakeholders within and outside the UAE.
His Excellency Sultan bin Saeed Al Mansouri, UAE Minister of Economy and Chairman of DIEDC, noted that sukuk has become a preferred tool for financing development projects around the world due to the stringency of its standards that guarantee wealth sustainability.
Al Mansouri said: “With its respect for the ethics of economic activity, sukuk revitalises the economy based on the principle of contribution rather than debt pressure.”
Al Mansouri added that if global Islamic banking assets reach US$3.3 trillion by 2021 as predicted by the State of the Global Islamic Economy Report, the attractiveness of Islamic banking services and customers’ trust in them will increase exponentially.
He said: “This will nominally increase sukuk issuance in the coming years and lead to the implementation of major development plans on both regional and global scales.”
He pointed out that the success of sukuk issuance and its listing in Dubai and the UAE is largely due to the global confidence the UAE has acquired as an incubator and advocate for responsible investments. “The development policies and plans our leadership is adopting, in addition to the UAE’s economic ability to diversify the attractive sectors for local and foreign investors, especially the Islamic sectors of the economy with its safe products and services, are the primary reasons behind the success of sukuk issuance and listing in Dubai,” he said.
For his part, His Excellency Essa Kazim, Secretary General of DIEDC, noted that sukuk is an ideal tool for financing sovereign projects worldwide, especially given the global trend to invest in non-oil production sectors and diversify national income sources. He commended Nasdaq Dubai’s efforts to support the Dubai Global Sukuk Centre initiative, and highlighted the importance of building on previous successes to develop new initiatives that boost the contribution of Islamic finance to the national economy.
Abdulla Mohammed Al Awar, CEO of DIEDC, stressed the Centre’s keenness to strengthen the role of Islamic finance institutions and banks, as well as work with its strategic partners to raise awareness about Islamic financial instruments, particularly sukuk, with the aim of stimulating development projects that ensure sustainability. He also highlighted the need for a qualified workforce to develop a sophisticated structure for sukuk issuance.
Al Awar further pointed out that the Islamic economy, with all its standards and ethics, focuses on the involvement of entrepreneurs and supports their plans to contribute to projects that promote social production. The sustained backing, he said, opens the way for constructive competition between economic entities in their respective local markets and in the world markets as well.
Speaking on the collaboration between Nasdaq Dubai and DIEDC, Hamed Ahmed Ali, CEO of Nasdaq Dubai, noted that the growing demand of investors that has been met with a proportional increase in sukuk issue locally and internationally, reflects sukuk’s position of power as a core financing tool for governments and companies alike.
He said the Dubai Global Sukuk Centre initiative reflects the leadership’s vision for the future of Dubai with 72 sukuk listings totalling US$59.2 billion (AED217 billion) taking place as part of the initiative – 39 of which, at a total value of US$26.26 (AED96 billion), are for entities and companies within the UAE, and 33 valued at US$32.95 (AED120 billion), are for companies and governments outside the UAE.
Ali expressed his sincere gratitude to local and international institutions, as well as government entities that have chosen Dubai as a listing platform for their issuances. He noted that the efforts in the next phase will focus on attracting new segments of investors, and forging partnerships that draw further sukuk issuances from new issuers.
Dubai Islamic Economy Development Centre
The Dubai Islamic Economy Development Centre (DIEDC) was established in December 2013 under the supervision of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, to transform Dubai into the capital of Islamic economy.
In 2017, DIEDC launched its refreshed Islamic economy strategy (2017-2021) that focuses on identifying new key performance indicators (KPIs) for monitoring the growth of three core Islamic economy sectors – Islamic finance, halal products, and Islamic lifestyle encompassing culture, art, fashion and family tourism – in addition to measuring their contribution to the UAE’s national economy. Knowledge, standards and digital Islamic economy serve as cornerstones that support these key sectors in achieving the leadership’s Islamic economy vision.
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