Nasdaq Dubai press release: Indonesian Sukuk raise Dubai listings to new global record above USD 50 billion Image Credit: Nasdaq Dubai

Dubai: The government of Indonesia listed two sukuk with a total value of $3 billion (Dh11 billion) on Nasdaq Dubai.

The listings raised the total nominal value of all sukuk listed in Dubai above $50 billion for the first time, to a global record high of $52.06 billion, Nasdaq Dubai said in an emailed statement.

The Indonesian government is the largest issuer on the exchange, with a total value of $11.5 billion from 8 listings. Other leading issuers include Saudi-based Islamic Development Bank with $8.5 billion and the government of Hong Kong with $3 billion.

“The channelling of Sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world. By pooling our know-how and respective traditions, we are creating a more dynamic global industry that better meets the commercial and social needs of everyone who seeks the growth and development of Sharia-compliant finance,” Dr Robert Pakpahan, Director General of Budget Financing and Risk Management, Ministry of Finance — Republic of Indonesia, said in a statement.

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “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.”

Variety of industries

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. Among UAE issuers, Dubai Islamic Bank has the largest Sukuk listings totalling 4.25 billion dollars.

Of Dubai’s $52.06 billion of listings, $49.3 billion are listed on Nasdaq Dubai and $2.75 billion are listed on Dubai Financial Market (DFM). Nasdaq Dubai announced in July 2015 that it had become the largest exchange for sukuk in the world and has since maintained that position. Indonesia’s latest sukuk listings comprise one issuance of $2 billion and another of $1 billion.

Dubai’s growth as the world’s largest Sukuk listing centre supports the initiative announced in 2013 for the Emirate to become the global capital of the Islamic economy.

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).

The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).