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Islamic Development Bank lists $1b sukuk in Dubai

Emirate’s drive to emerge as capital of Islamic economy gets major boost

A trader watches data on screens inside the Dubai Financial Market. IDB’s sukuk listing is the result of joint efforts between the Ministry of Finance, Supreme Committee of the Islamic economy Initiative, Nasdaq Dubai and the IDB. — Bloomberg

The Islamic Development Bank, or IDB, announced on Wednesday the listing of its $1 billion sukuk on Nasdaq Dubai, providing a vital thrust to the emirate’s resolute drive to emerge as the global capital of Islamic economy.

The supranational lender said the main objective behind the listing on Dubai bourse today was to provide additional financial resources to support its expansion plans and to prop up Islamic economic and financial sectors within the UAE.

The listing falls in line with the IDB’s Medium Term Note Programme, which recently increased from $6.5 billion to reach $10 billion.

The IDB announcement was made at a meeting with the bank’s delegation held with Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance. Dr Abdul Aziz Al Hinai, vice-president for Finance at IDB, led the delegation.

Shaikh Hamdan emphasised the importance of supporting Dubai’s initiative as the capital of Islamic economy and highlighted IDB’s position as a strategic partner and a major contributor to the achievement and success of this initiative.

The UAE, one of the main founders of the bank, accounts for 7.54 per cent, or 1.36 billion Islamic Dinars, of the IDB’s capital.

The listing is the result of joint efforts between the Ministry of Finance, Supreme Committee of the Islamic Economy Initiative, Nasdaq Dubai and the IDB.

“As the IDB expands its capital raising programme to fund activities across the Islamic world, the rapidly growing Islamic financial centre of Dubai is an excellent listing venue to underpin our sukuk issuance,” said Dr Al Hinai.

The UAE’s Shariah financing traditions and expertise, and its location in the heart of the Islamic world, combined with its world- class regulatory and exchange architecture, provide the IDB and investors with an ideal listing venue, he pointed out.

Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs, said the listing of IDB sukuk in Nasdaq Dubai provides great support to the ‘Dubai: Capital of Islamic Economy’ initiative launched by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Al Tayer said Islamic economy would play an important leading role in driving global economic growth over the next decade due to its well-established and fair bases that provide essential security requirements for investors.

— issacjohn@khaleejtimes.com