Monday, 5 May 2014

Dubai Financial Market welcomes US$750 million sukuk issue for the Dubai government


The Dubai Financial Market (DFM) announced the listing of US$750 million sukuk for the Government of Dubai on April 30. The 15 years issue matures in 2029.

His Excellency Essa Kazim, Chairman of DFM and Secretary General of the Dubai Islamic Economy Development Centre said: “The listing underlines the accelerating pace of efforts aimed at reinforcing Dubai’s position as the capital of Islamic economy and global sukuk centre in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, to position Dubai as the global capital of the Islamic economy, under the direction of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council. Dubai is the world’s third-largest venue for sukuk listings and this listing raises the total value of sukuk listed on Dubai capital markets to US$20.38 billion.”

The new issue will be OTC traded and settled through Clearstream and Euroclear, not DFM.

The news follows another multi-million dollar sukuk listing by DAMAC Real Estate Development on NASDAQ Dubai, which occurred on April 10.

Hussain Sajwani, Executive Chairman and Chief Executive of Damac Properties, said at the launch of the five-year US$650 million dollar sukuk:  “As the international exchange in the Middle East, NASDAQ Dubai offers DAMAC global visibility and first class regulatory standards from a venue in the region where we are based. Our sukuk listing provides a strong underpinning for our expansion plans, including acquiring land to strengthen our high-end and luxury development activities.”   
  The sukuk issued by DAMAC Real Estate Development was more than four times oversubscribed and was placed with institutional investors across Europe, the Middle East and Asia.

Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “The exchange is committed to providing DAMAC and its investors with the responsive framework they expect in a world class listing environment. NASDAQ Dubai will continue to streamline its admissions infrastructure and post-listing services in order to compete with and exceed best international practices.”