Two sukuk listed on Nasdaq Dubai have added $750 million to the exchange’s total listed value of these instruments.
The issuances from Sharjah Islamic Bank, which listed $500 million of sukuk, and Emirates Islamic, which listed $250 million, “reinforce” Dubai’s stature as the largest sukuk issuing centre in the world, said a statement from Nasdaq Dubai.
Known informally as Islamic bonds, sukuk are financial instruments that mimic the structure of a bond without paying interest on money, which is prohibited by Islam. Sukuk are typically structured on an underlying real asset.
There have been nearly $45 billion of sukuk listed in Dubai, according to Nasdaq Dubai’s count.
In the first quarter, sukuk accounted for 40% of bond issuance in major Islamic countries, according to research by ratings agency Fitch Ratings.
“The data reinforces a trend of gradually increasing use of sharia-compliant borrowing as more countries create legal frameworks to support issuance and as issuers attempt to attract a broader investor base, including Islamic finance investors,” said Fitch
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