(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

A US$500 million Sukuk issued by Sharjah Islamic Bank has begun trading on Nasdaq Dubai, strengthening the exchange's position as a leading hub for Sharia-compliant debt instruments and marking another step in Sharjah's broader capital-raising strategy. The exchange confirmed that the five-year issuance, structured under the lender's US$3 billion Trust Certificate Issuance Programme, enhances the visibility of Gulf-based issuers seeking to tap international investors through Dubai's regulated market.

Sharjah Islamic Bank, headquartered in the UAE and supervised by the Central Bank of the UAE, raised the amount with a profit rate of 4.6 percent and a maturity set for November 2030. Market data indicates that the pricing aligned with prevailing conditions in the global Sukuk market, where Gulf financial institutions have been issuing paper across various maturities to maintain liquidity cushions, meet regulatory capital requirements and diversify funding sources. Executives familiar with the transaction said the order book drew interest from investors in the Middle East, Asia and parts of Europe, similar to earlier GCC-based Sukuk launched this year by other banks and sovereign-linked entities.

The listing arrives amid continued growth in Dubai's status as a platform for Islamic finance, with authorities highlighting that the emirate hosts one of the world's largest concentrations of Sukuk listings by value. Market regulators and officials have emphasised that the jurisdiction's disclosure standards and its geographic position between major financial centres offer issuers efficient access to a broad investor base. Sharjah Islamic Bank's latest tranche adds to a pipeline of debt raised by UAE-based lenders as they adjust their balance sheets to evolving global monetary conditions and shifting demand for credit within the domestic economy.

See also Sharjah Advances Natural Hydrogen Push with Major Energy Alliance

Sharjah Islamic Bank has maintained a pattern of tapping the capital markets through its Trust Certificate Issuance Programme, a framework that enables issuances in multiple currencies and maturities while adhering to Sharia principles. The programme allows the bank to respond to market conditions quickly, offering instruments that comply with Islamic guidelines while meeting international regulatory expectations. Analysts following the bank's activity noted that this latest Sukuk fits within its funding strategy, which combines deposit mobilisation, wholesale funding and periodic Sukuk placements to support asset expansion.

The Sukuk's structure is understood to be compliant with widely accepted Sharia standards, allowing both Islamic and conventional investors to participate. Instruments of this type are typically backed by underlying assets, with returns distributed through profit payments rather than conventional interest. Regulatory disclosures showed that the certificates were issued through a special purpose vehicle established for the programme, a common structure for such instruments. The profit rate reflects prevailing global credit conditions and the bank's credit profile, which has remained stable, supported by adequate capital buffers and steady asset quality across its financing portfolio.

The listing also underscores Nasdaq Dubai's growing influence in regional Islamic finance, with the exchange continuing to attract issuances from financial institutions, sovereigns and government-related entities. Dubai authorities have reiterated their ambition to strengthen the emirate's role in the global Islamic economy, and listings of this scale contribute to that objective by deepening market liquidity and signalling confidence among issuers. Over the course of the year, several Gulf organisations have opted for Sukuk as a preferred funding route, citing healthy demand, cost-effectiveness and alignment with long-term financing plans.

See also ADNOC Global Trading Plans Expansion to Boost Operations

Sharjah, meanwhile, has been active across various financing channels as it works to manage fiscal requirements and support ongoing development projects. Although the Sharjah Islamic Bank Sukuk is a corporate issuance rather than a sovereign one, the listing contributes to the wider narrative of Sharjah-linked entities raising funds through diversified instruments. Economic observers point to improving investor sentiment towards Gulf issuers, driven by stable macroeconomic conditions, continued infrastructure development and stronger financial sector performance.

Market specialists say the 4.6 percent profit rate positions the Sukuk competitively relative to comparable GCC-issued Islamic debt, while also offering investors a predictable return backed by a regulated financial institution. The certificates are expected to appeal to fund managers seeking exposure to high-grade Sharia-compliant assets at a time when global fixed-income markets are adjusting to expectations around interest rate trajectories and liquidity cycles. The five-year tenor offers a balance between duration risk and yield, making it suitable for portfolios that prioritise medium-term holdings.

Also published on Medium.

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN01122025000152002308ID1110417914