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Indonesian Sukuk raise Dubai listings to new global record above USD 50 billion

PUBLISHED ON 30-Mar-2017
Indonesian Sukuk raise Dubai listings to new global record above USD 50 billion

  • Milestone reflects the channelling of global Islamic finance activity and knowhow into Dubai

  • Asian and MENA issuers choose Nasdaq Dubai for worldwide visibility and ease of listing

The government of Indonesia today listed two Sukuk with a total value of 3 billion US dollars on Nasdaq Dubai. The listings raised the total nominal value of all Sukuk listed in Dubai above 50 billion US dollars for the first time, to a global record high of 52.06 billion.

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

Dr. Robert Pakpahan, Director General of Budget Financing and Risk Management, Ministry of Finance - Republic of Indonesia, said:The channeling of Sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world. By pooling our knowhow 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’a-compliant finance.”

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.”

Global Sukuk issuance reached 72.9 US dollars globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than 2 trillion US dollars.

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 totaling 4.25 billion dollars.

Of Dubai’s 52.06 billion US dollars of listings, 49.3 billion US dollars are listed on Nasdaq Dubai and 2.75 billion US dollars 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. 

Nasdaq Dubai’s activities to promote the expansion of the Sukuk sector include working with the government of Tunisia to create a framework there for developing Sukuk financing. The exchange together with IdealRatings launched benchmark indices that track the performance of global Sukuk in October 2016.

Dubai’s growth as the world’s largest Sukuk listing centre supports the initiative announced in 2013 by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for the Emirate to become the global capital of the Islamic economy.

Indonesia’s latest Sukuk listings comprise one issuance of 2 billion US dollars and another of 1 billion US dollars.

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