Historic: Emirates Islamic marks $500 million Sukuk listing

By Rahul Vaimal, Associate Editor
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Emirates Islamic Bank Image
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The Chairman of Emirates Islamic Bank and Vice Chairman and Managing Director of Emirates National Bank of Dubai (NBD) Hesham Abdulla Al Qassim rang market-opening bell to mark the listing of $500 million Sukuk by the Emirates Islamic on Nasdaq Dubai.

The Bank achieved a profit rate of 1.827 percent, the lowest for a Sukuk issued by a UAE bank in 10 years, with 2.4 times subscriptions. The Fitch Ratings rated the issuance with A+ and was placed 41 percent in the Middle East and North Africa, 28 percent in Asia, 17 percent in the US to attract investors and 14 percent in Europe.

Mr Al Qassim stated that the appreciative acceptance from the Sukuk investors around the globe shows their trust over the Emirates Islamic’s business foundation, active growth strategy and ability to succeed in times of market variations. By listing NBD’s Sukuk on Nasdaq Dubai, international financial exchange of the region would aid in connecting with global investors and enable excellent visibility with a trusted regulatory structure.

Essa Kazim, Governor of Dubai International Financial Centre, Secretary General of Dubai Islamic Economy Development Centre, and Chairman of Dubai Financial Market,

“Emirates Islamic’s latest successful issuance and listing underline both the success of the Sukuk sector and the resilient economic performance achieved by the UAE and Dubai in addressing the global challenges that 2020 has brought. Dubai will further expand its leadership role in Sukuk as part of the global capital of the Islamic economy initiative.”

The latest Sukuk of Emirates Islamic listing on Nasdaq Dubai on September 23rd, 2020 brought the Bank’s current Sukuk value on the exchange to $1.5 billion, after a $750 million and $250 million listings in 2016.

Abdul Wahed Al Fahim Image
Abdul Wahed Al Fahim
Nasdaq Dubai

“The Exchange’s Sukuk market has achieved significant expansion in 2020 with new listings so far totaling $11.9 billion, up 15% from $10.35 billion in the same period last year. We are committed to further promoting capital raising and business growth through Sukuk listings for the benefit of issuers, investors and the wider community.”

The par value of Sukuk now listed in Dubai has touched $73.99 billion and it is one of the biggest in any listing centers of the world.

The Chief Executive of Emirates Islamic, Salah Mohammed Amin commented that the fund accumulated through Sukuk issuance will support the company’s Sharia’a-compliant services enhancement for individuals as well as businesses.

Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of Dubai Financial Market, said, “The positive reception for Emirates Islamic’s Sukuk reflects the stature of the Bank as one of the world’s leading Islamic financial institutions, as well as the growing suitability and versatility of this asset class as a capital raising vehicle.”

Currently in Dubai 46 percent of Sukuk listings are from UAE issuers and 54 percent from global issuers.