Sukuk to fight COVID-19; Nasdaq Dubai gathers 1.5 billion IsDB Sukuk

By Rahul Vaimal, Associate Editor
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Dubai Nasdaq
Image Courtesy: WAM

The region’s international financial exchange, Nasdaq Dubai received a US$ 1.5 billion Sukuk released by Islamic Development Bank (IsDB) to boost aid initiatives for COVID-19 on Sunday, taking the number of IsDB Sukuk listed on the international exchange of the region to 12 with a total value of $16.14 billion.

The money raised would aid finance medical, social, and business programs aimed at protecting the health and improving lives in many of the bank’s 57 member countries. It is the only Sukuk in the world for COVID-19 relief.

With the new listing, Dubai’s Sukuk listing volume now amounts to $70.79 billion, reinforcing its position of the emirate as one of the world’s largest Sukuk listing centers by volume.

Dr. Bandar Hajjar
Dr. Bandar Hajjar, President – IsDB

“Our debut Sustainability Sukuk issuance will play a vital role in social projects that improve healthcare facilities, equipment and critical staffing in member countries to mitigate the effects of COVID-19, as well as support small and medium-sized businesses and promote employment as countries recover from the effects of the disease. The competitive profit rate of 0.908% that we achieved reflects strong market confidence in our issuance and we look forward to further expanding our sustainable financing activities, including developing our cooperation with Nasdaq Dubai as the region’s international financial exchange.”

Essa Kazim, Secretary-General of Dubai Islamic Economy Development Centre, and Chairman of Dubai Financial Market said, ”The listing underlines the growth of Dubai 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 Minister, and Ruler of Dubai”.

Earlier, the Sharjah Islamic Bank and the GFH Financial Group had issued Sukuk of $500 million and $200 million respectively.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, commented that “this listing underlines the wide diversity of issuers on Nasdaq Dubai, which so far this year has hosted new Sukuk issuances from a variety of sovereign, multilateral and private sector entities from around the world. We are delighted to make our high profile listing platform and regional and international investor links available to IsDB as it expands its beneficial and widely appreciated activities globally.”