In a year marked by global financial uncertainty and tightening liquidity, Sharjah Islamic Bank (SIB) has successfully raised $500 million through a senior unsecured sukuk, reinforcing its reputation as a resilient and trusted issuer in the Islamic finance space.

The five-year sukuk, priced at a competitive yield of 4.65 per cent - just 95 basis points above US Treasuries - drew an impressive order book of over $ 1.35 billion, oversubscribed by 2.6 times. Investors from the Middle East, Europe, and Asia participated, reflecting strong international confidence in SIB's credit profile and the broader appeal of Shariah-compliant instruments.

“This issuance is a testament to our ability to navigate volatile markets while maintaining disciplined liquidity management,” said H.E. Mohamed Abdalla, CEO of SIB.“It marks our tenth senior unsecured sukuk and our third capital markets transaction in 2025.”

The deal comes amid a surge in sukuk activity across the UAE. According to Fitch Ratings, the country's outstanding sukuk and bond issuances reached $309.4 billion by Q1 2025, an 8.3 per cent year-on-year increase. Sukuk alone accounted for over 20 per cent of this total, with new issuances in Q1 hitting $4.9 billion - double the volume from the previous quarter.

The UAE's Islamic finance sector is undergoing a strategic transformation. A national strategy approved earlier this year aims to double Islamic banking assets to Dh2.56 trillion and boost local sukuk issuances to Dh660 billion by 2031. The country already ranks fourth globally in outstanding sukuk and is home to Nasdaq Dubai, the world's largest sukuk exchange, with nearly $99 billion listed.

Mohamed Abdalla, CEO of Sharjah Islamic Bank, noted that with this transaction, SIB now has three outstanding sukuk, one maturing in 2029 and two in 2030.“Capital market activities remain a key component of SIB's long-term funding strategy, which has been successfully implemented since 2006. This latest Sukuk demonstrates our ability to access global markets efficiently, even in challenging conditions, while maintaining prudent liquidity management. It also marks the Bank's tenth senior unsecured sukuk issuance, reinforcing our reputation as a consistent and trusted issuer, he added.

SIB's Deputy CEO, Ahmed Saad, noted that strong demand allowed the bank to tighten pricing by 30 basis points from initial guidance.“This outcome reflects investor trust in our strategic execution and the strength of our fundamentals,” he said.

The UAE's sukuk market is also embracing innovation, with tokenized sukuk gaining traction and green sukuk issuance projected to reach $10–12 billion in 2025. These developments align with the country's broader goals of sustainability and digital transformation in finance.

As the UAE continues to position itself as a global hub for Islamic finance, SIB's successful issuance underscores the growing maturity and international relevance of the sukuk market - a space where tradition meets innovation, and resilience drives growth.

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