After achieving record results for the first auction, which saw the issuance of two tranches of AED 1.1 billion

First Dirham-denominated Islamic Treasury Sukuk Begins Trading on Nasdaq Dubai

Al-Husseini rang the opening bell of trading. From the source

The Minister of State for Financial Affairs, Mohammed bin Hadi Al Husseini, rang the opening bell of trading on the Nasdaq Dubai stock exchange yesterday, marking the listing and trading of the first issue of Islamic treasury sukuk (T-Sukuk) denominated in dirhams, which was issued by the UAE represented by the Ministry of Finance as an issuer, in cooperation with the Central Bank of the UAE as an issuing and payment agent, with a standard auction size of up to AED 1.1 billion.

The Ministry of Finance explained in a statement that the issuance of these sukuk includes a series of issuances of Islamic treasury sukuk, in order to attract a new category of investors to support the sustainability of economic growth, enhance the economic competitiveness of the state, in addition to contributing to the provision of high-quality Islamic assets at competitive prices, which supports the Central Bank in managing liquidity within the banking sector and raises the volume of financial investments, which reflects positively on the country's economy, investment environment, per capita income and gross national income.

The inaugural issuance of the T-Sukuk programme generated strong demand from the eight main distributors, with bids of AED 8.3 billion received, exceeding the subscription size by 7.6 times.

Orders for Islamic treasury sukuk were distributed in dirhams across the two tranches, achieving a two-year sukuk of AED 550 million, and a three-year sukuk of AED 550 million, with a total issuance of AED 1.1 billion.

The other tranches of Islamic treasury sukuk will be issued initially at varying tenors of up to five years, followed by a 10-year tranche at a later date.

Al-Husseini said that the issuance of Islamic treasury sukuk denominated in dirhams contributes to the expansion of Islamic banking, as it is one of the most prominent tools for managing monetary policy and liquidity to finance development programs and projects, and it also provides Sharia-compliant certificates and securities for trading in the secondary market alongside the main distributors, reflecting the current return on investment.

He added that these sukuk will contribute to stimulating the stock market in general, and strengthening the base of Islamic securities in particular, providing safe and rewarding investment alternatives that attract new segments of local and international investors.

For his part, the Governor of the Central Bank, Khalid Mohammed Balama, said that «the first issuance of the Islamic Treasury Sukuk Program (T-Sukuk) denominated in dirhams, contributes to consolidating the country's competitive position as an advanced global financial center, based on its capabilities to diversify the activities of the capital markets, and strengthen the infrastructure to support investment options and alternatives compatible with the provisions of Islamic Sharia, as well as consolidating the strength and stability of the financial system, raising the volume of financial investments, and raising the confidence of local and international investors in the financial system of the state, which leads to the development of The financial sector with a strategic vision, and the dedication of the leading role of the UAE in the global Islamic economy."


The primary distributors responsible for secondary market development include eight banks: Abu Dhabi Islamic, Dubai Islamic, Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi, Mashreq, HSBC and Standard Chartered.