Value of sukuk issued in UAE tops $26.8 billion

Dubai: Sukuk issuance in the UAE crossed $26.8 billion (Dh98.3 billion) from 34 issuances between 2000 and 2008, making the country a market leader in the Gulf's Islamic bond market.

The Dubai International Financial Centre (DIFC), home to the largest exchange for sukuk by listed value, worth more than $16 billion, on Monday launched DIFC Sukuk Guide — a comprehensive introduction to various sukuk structures, as well as legal and regulatory information on issuing sukuk from the DIFC and listing sukuk on Nasdaq Dubai.

The guide reflects the leading role that DIFC plays in global Islamic finance.

It provides an operating, listing and incorporating environment that is world class, and ideally suited to structured Islamic and non-Islamic products.

Prospects

The guide notes that although sukuk issuances globally have been affected by the worldwide economic crisis, prospects are positive, citing a Standard & Poor's analysis indicating that the total amount of sukuk issued or being talked about in the market is estimated to be about $50 billion.

The leading role of DIFC and Nasdaq Dubai — the international-calibre exchange within DIFC — recently was reflected when the International Finance Corporation issued a landmark $100 million sukuk on Nasdaq Dubai and the Bahrain Stock Exchange, becoming the first non-Islamic financial institution to issue a sukuk for term funding in the Gulf Cooperation Council.