Nasdaq Dubai has marked a significant milestone in the realm of Islamic finance by listing Emirates Islamic Bank’s $500 million Sustainability-Linked Sukuk, the first of its kind globally. This issuance falls under the Emirates Islamic $4 billion Sukuk Programme, highlighting the bank’s leadership role in sustainable finance and its commitment to supporting the UAE’s sustainability goals.
The Sukuk issuance gathered considerable interest from international investors, with orders reaching $1.2 billion, 2.4 times the offered amount. This overwhelming response allowed the sukuk to be priced at a profit rate of 4.54% per annum, which is 95 basis points above the five-year US Treasury rates. Such figures reflect a keen investor appetite for sustainability-focused financial instruments within the realm of Islamic finance.
A bell-ringing ceremony at Nasdaq Dubai’s market opening underscored the significance of this listing. Hesham Abdulla Al Qassim, Chairman of Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, participated in the event alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market. The ceremony commemorated the bank’s commitment to delivering Shari’ah-compliant solutions that appeal to a wide international investor base.
Hesham Abdulla Al Qassim noted that the listing cements Emirates Islamic’s financial robustness and its dedication to the UAE’s Net Zero 2050 ambitions. He emphasized that the transaction showcases the bank’s capacity to pioneer solutions in sustainable Islamic finance and attract a diverse range of investors.
Nasdaq Dubai’s CEO, Hamed Ali, reflected on the broader implications of the listing, asserting that it highlights Dubai’s position as a burgeoning global hub for Islamic and sustainable capital markets. He also pointed out the platform’s role in facilitating immediate access for issuers and investors to innovative financing solutions aligned with Dubai’s economic and environmental goals.
This latest listing elevates Emirates Islamic Sukuk’s total outstanding listings on Nasdaq Dubai to $2.77 billion. In total, Nasdaq Dubai’s Sukuk listings exceed $100 billion, thus reinforcing its status as a leading global center for Islamic fixed-income products.
The exchange, which now accommodates $140 billion in fixed income and $28.7 billion in ESG listings, is becoming increasingly central to global financing efforts that prioritize sustainability. This move aligns with the global trend towards environmentally conscious investing, an area where Middle Eastern finance is beginning to make notable strides.
