DUBAI: The Islamic Development Bank (IDB) will set up a $10bn sukuk issuance programme on the Nasdaq Dubai exchange, a boost to Dubai’s efforts to become a top centre for Islamic finance in competition with other cities.
It would be the Jeddah-based IDB’s third sukuk programme and its first in a Middle Eastern country. The international lender, which has 56 member countries, promotes economic development in Muslim countries and communities. In January, Dubai launched a drive to become a centre for Islamic business; its exchanges have so far listed $12.5bn of sukuk and the total is expected to reach $16bn by year-end, a statement from the office of Dubai’s ruler said.
Its sukuk are highly sought after by Islamic investors because of their AAA credit rating, so they could offer a much-needed boost to trading volumes in Dubai and encourage more issuers from outside the emirate to choose Dubai as their listing venue. Reuters