Monday, 14 May 2018
Sharjah Islamic Bank, DAMAC Properties list new sukuk with Nasdaq Dubai
Nasdaq Dubai has welcomed the listing of two sukuk by UAE issuers. Sharjah Islamic Bank (SIB) listed a US$500 million sukuk, and DAMAC Properties, a major real estate developer in the region, listed a US$400 million instrument.
DAMAC Properties delivers residential, commercial and leisure properties across the region, including the UAE, KSA, Qatar, Jordan, Lebanon and Oman as well as the UK. The listing on the region’s international exchange supports DAMAC Properties’ capital raising programme for general corporate purposes and its ongoing growth strategy, as it continues to extend its footprint in the Middle East and beyond with projects.
The listing on the region’s international exchange supports DAMAC Properties’ capital raising programme for general corporate purposes and its ongoing growth strategy. The sukuk was sold to investors in the Middle East, Europe and Asia. It is the third sukuk listed by Dubai-based DAMAC Properties on Nasdaq Dubai, following a US$650 million sukuk listed by the company in April 2014 and a US$500 million issuance in April 2017.
Hussain Sajwani, Chairman of DAMAC Properties, said: “DAMAC continues to expand its development portfolio at home and internationally, as we seek out strategic investments that would enable us to expand our footprint into key global markets. The sukuk enables us to raise capital cost effectively and our listing on Nasdaq Dubai gives our sukuk high visibility around the world together with an excellent regulatory framework.”
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “This issuance and listing by one of the region’s leading real estate developers underlines the leading role played by Dubai as an international centre of sukuk expertise and activity, made possible by the depth and breadth of Islamic finance professionals based in the Emirate. Sukuk are an important pillar of the initiative positioning Dubai to be the global capital of the Islamic economy launched by HH Sheikh Mohammed Bin Rashid Al Maktoum, the VP and PM of the UAE and Ruler of Dubai.”
Two other sukuk issued by SIB are currently admitted to trading on Nasdaq Dubai. Both are US$500 million issuances that listed in 2015 and 2016. DAMAC Properties’ other sukuk listed on Nasdaq Dubai comprise issuances of US$650 million and US$500 million in 2014 and 2017 respectively.
SIB supplies a broad range of sharia'ah-compliant retail, corporate and investment services through its networks across the country, including asset management and international banking, serving individual and institutional clients.
The latest listings by SIB and DAMAC Properties bring the total value of all sukuk listed in Dubai to US$59.22 billion, strengthening the Emirate’s role as the leading global centre for sukuk listings by value.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As the sukuk market expands globally by attracting a growing range of issuers and investors from diverse backgrounds, we will further enhance our services on their behalf including before listing and post-listing activities. Nasdaq Dubai will continue to develop its Islamic finance asset classes, with sukuk at the forefront of our growth and innovation as we expand our role as the region’s international exchange.”