Nasdaq Dubai has welcomed the listing of $500 million Sukuk issued by Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE.

The additional Tier 1 (AT1) Sukuk was issued at a profit rate of 5.25% per annum and received strong investor demand, resulting in substantial oversubscription. This strategic issuance reinforces DIB's leadership in the global Islamic finance sector, providing additional capital to support its growth strategy.

With this listing, Nasdaq Dubai further cements its position as a leading global hub for Sukuk, with total outstanding Sukuk now reaching $93 billion across 102 listings and a combined $133 billion in capital market listings. The exchange remains dedicated to supporting Islamic finance and fixed-income products, providing a robust platform for issuers and investors globally.

Diverse range of investors

The issuance attracted a diverse range of investors, including financial institutions, private banks, and fund managers from Europe, Asia, and the Middle East, underscoring the growing appeal of Islamic financial instruments and highlighting investor confidence in the UAE’s robust financial market. The Sukuk is dual listed on Nasdaq Dubai and Euronext Dublin.

To mark the listing, Saeed Wajdi, Chief of Treasury at DIB rang the bell at the market-opening ceremony at Nasdaq Dubai, alongside Hamed Ali, CEO of Nasdaq Dubai and DFM.

Dr Adnan Chilwan, Group Chief Executive Officer of DIB, stated: "The successful reception of our $500 million Sukuk listing on Nasdaq Dubai transcends beyond reaffirming market confidence in DIB. It signifies a robust endorsement of the UAE's economic resilience and future ambitions. In line with the leadership's transformative vision, we are driving initiatives that strengthen the national economy and position us as a global leader in Islamic finance. This listing amplifies our profile, connecting us with a broader spectrum of investors and utilising Nasdaq Dubai’s well-regulated platform to expand our global reach and elevate our investor relations.”

Growing demand for Islamic finance

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), said: “We welcome DIB’s latest Sukuk listing to Nasdaq Dubai, which underscores the growing demand for Islamic finance and the strength of the UAE’s capital markets. We remain committed to providing a dynamic platform that supports issuers and investors, fostering growth and innovation in Islamic finance worldwide.”

The transaction, executed intra-day, achieved a reset spread of 133.4 basis points over US Treasuries, marking the lowest for an AT1 instrument globally since the 2009 financial crisis. Rated A3 (Stable) by Moody’s and A (Stable) by Fitch, DIB currently boasts an outstanding value of over $9 billion through 11 Sukuk listings on Nasdaq Dubai.