12
12
FINANCE
@ Halal | May-June. 2025
Nasdaq Dubai expands sukuk
• Mashreq and Sharjah Islamic Bank( SIB) each listed US $ 500 million sukuk, boosting the UAE’ s role in global Islamic finance.
• Nasdaq Dubai’ s sukuk listings reached US $ 97.2 billion, solidifying its position as a leading Sharia-compliant platform.
• Strong investor demand reflects global confidence in ethical and halal financial instruments.
BY FARISHA RAHMAN
NASDAQ D u b a i recently witnessed two major sukuk listings that further affirm its role as a leading platform for Sharia-compliant financial instruments. Mashreq and Sharjah Islamic Bank( SIB), two prominent financial institutions in the United Arab Emirates, each issued US $ 500 million sukuk, bringing fresh momentum to the Islamic finance industry both regionally and globally.
These transactions not only enhance investor confidence in sukuk as a stable and ethical investment vehicle but also showcase the robust infrastructure that Dubai has built to support halal finance.
MASHREQ MILESTONE
Mashreq, one of the region’ s oldest and most innovative banks, made its debut sukuk listing on Nasdaq Dubai through its Islamic banking arm, Mashreq Al Islami. Issued under a US $ 2.5 billion Trust Certificate Issuance Programme, the US $ 500 million sukuk is due in 2030 and marks a significant milestone for the bank as it deepens its commitment to Islamic finance.
The issuance received a highly positive response from global investors, with an orderbook reaching US $ 2.9 billion. This was nearly six times oversubscribed. The final pricing was set, underscoring strong investor confidence in Mashreq’ s creditworthiness and its standing in the Islamic finance community.
Mashreq Group Chief Executive Officer( CEO) Ahmed Abdelaal noted that their debut listing on
SUKUK LISTING: SIB and Nasdaq Dubai officials mark the successful US $ 500 million AT1 sukuk listing, reinforcing Dubai’ s leadership in Islamic finance.
Nasdaq Dubai marks a new chapter in Mashreq’ s capital markets journey.
“ This sukuk issuance affirms our disciplined approach to funding and commitment to Sharia-compliant financial practices,” said Abdelaal.
Chairman Abdul Aziz Al Ghurair echoed this sentiment. He stated that the listing represents a meaningful contribution to the evolution of global Islamic capital markets and reinforces the United Arab Emirates’( UAE) position as a central hub for ethical and Sharia-compliant financing.
SIB CAPITAL
In a parallel move, SIB listed a US $ 500 million Additional Tier 1 sukuk, which is perpetual and non-callable for six years, on Nasdaq Dubai. Issued in compliance with Basel III regulations, the sukuk provides the bank with added capital to fuel long-term growth and financial stability.
This latest transaction brings the bank’ s total sukuk listings on Nasdaq Dubai to US $ 2.5 billion across five separate issuances. It reinforces SIB’ s reputation as a key player in the Islamic finance ecosystem.
His Excellency Ahmed Saad, Deputy Chief Executive Officer of SIB, said that the successful listing reflects the bank’ s strong fundamentals, robust investor confidence, and commitment to maintaining a solid capital base.
The listing aligns with SIB’ s longterm growth strategy and highlights the increasing demand for diversified, Sharia-compliant investment opportunities across international markets.
DUBAI LEADERSHIP
With these new listings, the total value of sukuk listed on Nasdaq Dubai has reached US $ 97.2 billion. This further consolidates its status as one of the world’ s largest platforms for Islamic fixed-income securities. In total, the exchange’ s broader debt capital market now exceeds US $ 140 billion across 163 issuances.
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, commented that these listings are more than just capital raising events. He explained that they reflect a growing maturity in the Islamic finance market.
He stated that Nasdaq Dubai is proud to serve as a trusted marketplace that connects regional issuers with global investors while promoting ethical and sustainable financing.
The exchange’ s growth supports Dubai’ s broader ambition of becoming a global hub for the Islamic economy. This aligns with the Dubai Islamic Economy Strategy. The increasing number of sukuk issuances, particularly during periods of global economic uncertainty, reflects resilience and growing trust in halal investment instruments.
GLOBAL MOMENTUM
Both Mashreq and SIB’ s listings serve as a vote of confidence in the strength and future potential of Islamic finance. Sukuk, as a halal investment product, continues to attract a diverse range of investors seeking stable, ethical, and Sharia-compliant alternatives.
These developments are particularly significant in a post-pandemic environment marked by shifting economic priorities. The strong performance of both sukuk issuances, despite volatility from recent macroeconomic disruptions such as the announcement of new United States( US) tariffs, signals a renewed appetite for Islamic debt instruments and a strong foundation for future growth.
As the Islamic finance sector continues to evolve and expand, Dubai remains firmly at the centre of this transformation. Through institutions like Nasdaq Dubai and leading banks such as Mashreq and SIB, the emirate is setting global benchmarks in halal financing.
The latest sukuk listings not only deepen capital markets in the region but also reflect the increasing importance of ethical finance in the international economic landscape.
With robust frameworks, regulatory clarity, and growing international demand, Islamic finance is no longer a niche market. It is becoming a cornerstone of responsible and sustainable investment. Dubai is at the forefront of this global movement.-