Dubai's sukuk listings rise to new global high of $52bn

Gov't of Indonesia boosts Dubai with listing of two sukuk with a total value of $3bn

The government of Indonesia has listed two sukuk with a total value of $3 billion on Nasdaq Dubai, raising the total nominal value of all sukuk listed in Dubai above $50 billion for the first time.

The Indonesian government is the largest issuer on the exchange, with a total value of $11.5 billion from eight listings.

Other leading issuers include Saudi-based Islamic Development Bank with $8.5 billion and the government of Hong Kong with $3 billion out of the $52.06 billion total.

Dr Robert Pakpahan, director general of Budget Financing and Risk Management, Ministry of Finance - Republic of Indonesia, said: “The channeling of sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world."

Hamed Ali, chief executive of Nasdaq Dubai, added: “The rapid expansion of Dubai’s sukuk market is based on intellectual as well as financial input from a wide range of issuers, investors and market participants based in dozens of countries. There is a common desire to come together to achieve new standards of excellence and efficiency and Dubai will further strengthen its role as a facilitator of this process.”

Global sukuk issuance reached $72.9 globally in 2016, according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than $2 trillion.

MENA region sukuk issuers with Dubai listings include government and private sector entities active in a variety of industries including property, education, leisure, transport, finance, and infrastructure development.

Of Dubai’s $52.06 billion of listings, $49.3 billion are listed on Nasdaq Dubai and $2.75 billion on Dubai Financial Market (DFM).

Dubai’s growth as the world’s largest sukuk listing centre supports the initiative announced in 2013 by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for the emirate to become the global capital of the Islamic economy.

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