Value of debt securities listed on Nasdaq Dubai crosses $136 billion

With the latest $1 billion listing by the Government of Ras Al Khaimah, the total value of sukuk listed on Nasdaq Dubai now exceeds $92.7 billion, further enhancing its position as a global hub for Islamic finance.

The listing, a 10-year $1 billion senior unsecured sukuk at a profit rate of 5.038 per cent issued on March 5, was through the Investment and Development Office of Ras Al Khaimah.

Overall, now the value of debt securities currently listed on Nasdaq Dubai has reached $136.2 billion across 157 issuances.

Fitch Ratings anticipates a vibrant UAE debt capital market (DCM) in 2025, and predicts it to grow to $400 billion over the next few years.

This growth will be propelled by funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the Dirham Monetary Framework (DMF) implantation, the ratings agency said.

Due in 2035, the new sukuk has been issued under the $2 billion trust certificate issuance programme of RAK Capital, a special-purpose vehicle affiliated with the Government of Ras Al Khaimah, and will support the emirate’s economic growth and infrastructure development plans.

The issuance attracted strong investor demand, with an orderbook exceeding $4.4 billion, indicating market confidence in Ras Al Khaimah’s economic stability and growth prospects.

Mohammed Sultan Al Qadi, managing director at the IDO, rang the market-opening bell at Nasdaq Dubai on behalf of the Government of Ras Al Khaimah to celebrate the listing, in the presence Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).

“This Sukuk issuance is a reflection of Ras Al Khaimah’s prudent financial management and our commitment to long-term economic growth. The overwhelming investor response highlights the strength of our economic fundamentals, and listing on Nasdaq Dubai provides us with a transparent and well-regulated platform to engage with global investors,” said Al Qadi.

Ali said the strong investor demand reflects the deep and sustained appetite for high-quality sovereign debt. “With government issuances making up 62 per cent of Nasdaq Dubai’s listings, this reinforces our position as the leading exchange for public fundraising, providing issuers with a trusted and well-regulated platform to access global capital markets.”

This listing follows RAK Capital’s previous Sukuk issuances on the exchange, including the $500 million Sukuk that matured in October 2018 and the currently listed $1 billion Sukuk issued in 2015, which will mature by the end of March 2025.

According to Fitch, A favourable funding environment, with projected lower US Federal Reserve interest rates in 2025, and declining oil prices could further stimulate the diverse DCM. “Nasdaq Dubai continues to be a key global listing venue for Sukuk. After surpassing $300 billion and up just over 10 per cent from last year, the UAE DCM is on track to reach $400 billion, driven by strategic diversification and reforms,” says Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings.

“The UAE continues to be a key part of the global sukuk landscape, with 92 per cent of its sukuk being investment-grade, nearly all of its sukuk issuers on stable outlooks. No defaults in 2024 highlight the market stability, supported by the evolving Dirham Monetary Framework and favourable funding conditions,” Al Natoor said.

The UAE was the third-largest dollar debt issuer in emerging markets (excluding China) and the second-largest DCM among GCC countries in 2024.