Wednesday 25, April 2018 by Jessica Combes

Dubai to become leading Sukuk-listing hub through new agreement


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.

DIEDC outlined plans for developing the Sukuk market and increasing sukuk issuances and listings in Dubai to boost economic growth.

A key objective of the ‘Dubai: Capital of Islamic Economy’ initiative that was launched in 2013 was achieved when Dubai was globally ranked in 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.

HE 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. “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 $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, adding that “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 added 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.

HE 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.

Abdulla Mohammed Al Awar, CEO of DIEDC added 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 Al Ali, CEO of Nasdaq Dubai, said the Dubai Global Sukuk Centre initiative reflects the leadership’s vision for the future of Dubai with 72 sukuk listings totalling $59.2 billion (AED217 billion) taking place as part of the initiative – 39 of which, at a total value of $32.95 (AED120 billion), are for entities and companies within the UAE, and 33 valued at $26.26 (AED96 billion), are for companies and governments outside the UAE.

Al 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. 


Features & Analyses