Nasdaq Dubai has announced the successful listing of a $500 million Additional Tier 1 (AT1) Sukuk from Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE. Issued at a profit rate of 5.25% per annum, the Sukuk garnered robust investor interest, resulting in significant oversubscription. The issuance serves as a testament to DIB’s leadership in the Islamic finance industry and provides the bank with additional capital to fuel its growth strategy.
This latest Sukuk listing strengthens Nasdaq Dubai’s position as a global leader in Islamic finance. With the addition of DIB’s issuance, the exchange now oversees $93 billion in outstanding Sukuk across 102 listings and a total of $133 billion in capital market listings. Nasdaq Dubai continues to support Islamic financial products by offering a strong platform for issuers and investors globally.
Broad Investor Interest
The Sukuk attracted a diverse pool of investors, including financial institutions, private banks, and fund managers from Europe, Asia, and the Middle East. The substantial interest highlights the growing demand for Islamic financial instruments and reflects investor confidence in the stability of the UAE’s financial markets. The Sukuk is dual listed on Nasdaq Dubai and Euronext Dublin.
To celebrate the listing, Saeed Wajdi, Chief of Treasury at DIB, rang the bell at the market-opening ceremony at Nasdaq Dubai, accompanied by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
Dr. Adnan Chilwan, Group CEO of DIB, emphasized the significance of the listing, stating, “The successful reception of our $500 million Sukuk transcends beyond reaffirming market confidence in DIB. It reflects the UAE’s economic resilience and ambition. In line with the country’s transformative vision, we are launching initiatives that bolster the national economy and enhance our position as a global leader in Islamic finance. This listing expands our global reach and enhances our engagement with a broader range of investors, utilizing Nasdaq Dubai’s well-regulated platform.”
Rising Demand for Islamic Finance
Hamed Ali, CEO of Nasdaq Dubai and DFM, welcomed the listing, stating, “DIB’s latest Sukuk listing highlights the growing demand for Islamic finance and underscores the strength of the UAE’s capital markets. We remain dedicated to fostering growth and innovation in Islamic finance by offering a dynamic platform for both issuers and investors.”
Executed intra-day, the transaction achieved a reset spread of 133.4 basis points over U.S. Treasuries—the lowest for an AT1 instrument globally since the 2009 financial crisis. Rated A3 (Stable) by Moody’s and A (Stable) by Fitch, DIB’s total outstanding value now exceeds $9 billion through 11 Sukuk listings on Nasdaq Dubai.
