Two Indonesian sukuk listings with a total value of $3 billion in Nasadq Dubai have raised the total nominal value of all Sukuk listed in Dubai above $50 billion for the first time, to a global record high of 52.06 billion.

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

Dr Robert Pakpahan, director general of Budget Financing and Risk Management, Ministry of Finance - Republic 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 knowhow 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 Sharia’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 $72.9 billion globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than $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 $4.25 billion.

Of Dubai’s $52.06 billion of listings, $49.3 billion are listed on Nasdaq Dubai and $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.   

Nasdaq Dubai’s activities to promote the expansion of the Sukuk sector include working with the government of Tunisia to create a framework there for developing Sukuk financing. The exchange together with IdealRatings launched benchmark indices that track the performance of global Sukuk in October 2016.

Indonesia’s latest Sukuk listings comprise one issuance of $2 billion and another of $1 billion. – TradeArabia News Service