Indonesian Sukuk Raise Dubai Listings to New Global Record over US$50 Billion

Indonesia lists the largest sovereign Sukuk in Dubai.

Dubai, 02 Rajab 1438/30 March 2017 (MINA) – The government of Indonesia Thursday listed two Sukuk with a total value of US$3 billion on Nasdaq Dubai.

The listings raised the total nominal value of all Sukuk listed in Dubai above US$50 billion for the first time, to a global record high of US$52.06 billion, WAM reported.

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

Dr. Robert Pakpahan, Director-General of Budget Financing and Risk Management, Ministry of Finance of Indonesia, said, “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 Shari’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 US$72.9 globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than US$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 US$4.25 billion.

Of Dubai’s US$52.06 billion of listings, US$49.3 billion are listed on Nasdaq Dubai, and US$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 US$2 billion and another of US$1 billion. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)