Sukuk initiative launched in Dubai

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday rang the opening bell on an initiative to transform Dubai into a global centre for Islamic bonds (sukuks).

The initiative, called Transforming Dubai into a Global Centre for Islamic Bonds, is the first executive plan following Shaikh Mohammad’s January 9 declaration to develop Dubai into a centre for Islamic finance. Launched on the floor of the Dubai Financial Market on Wednesday, the new initiative will create a centre for issuing, listing and trading sukuks. Part of the initiative’s aim is to encourage organizations to issue sukuks instead of bonds.

When Shaikh Mohammad originally announced the plan to develop Dubai into a centre for Islamic finance in January, it was to include Islamic finance instruments, Islamic insurance, Islamic contract arbitration, Islamic food industry and trade standards (Halal food), as well as Islamic quality-management standards.