By Staff writer
Nasdaq Dubai listing is big boost to emirate's ambition to be global capital for the Islamic economy, says Sheikh Hamdan
The Government of Hong Kong has announced plans to list its debut $1 billion sukuk on Nasdaq Dubai in a major boost to Dubai's bid to become the global capital for the Islamic economy.
Hong Kong offered its inaugural sukuk on Thursday, with an issuance size of $1 billion and a five-year tenor.
The Monetary Authority said the sukuk saw strong demand from global investors, attracting orders exceeding $4.7 billion.
The sukuk was allocated to over 120 global institutional investors, with 36 percent of the sukuk distributed to the Middle East, 47 percent to Asia, 6 percent to Europe, and 11 percent to the US.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and chairman of the Executive Council, said in comments published by news agency WAM that he welcomed the decision.
"Choosing Nasdaq Dubai as a platform to list the world's first USD Sukuk issued by a AAA-rated government falls in line with the initiative launched by Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum to position Dubai as the centre of Islamic Economy," he said.
"We are also pleased to have worked with Hong Kong on this important issue and delighted that it has attracted such strong demand. We look forward to closer working relations with Hong Kong in developing global Islamic financial products," he added.
He said the step further highlights Dubai as one of the most important platforms for trading Shariah-compliant financial products.
The success of the sukuk was preceded a global roadshow covering Riyadh, Dubai, Abu Dhabi, Doha, Kuala Lumpur, Hong Kong, Singapore, London and New York.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.