Nasdaq Dubai has welcomed the listing of a $300 million sukuk by Sobha Realty, one of the region’s largest real estate developers. 

 

The Islamic issuance listing introduces a new dimension to the GCC sub-investment grade sukuk market by becoming the first of its kind to include a call feature. The sukuk, which has a tenure of five years, offers investors an attractive annual profit rate of 8.75%, which is payable semi-annually.

 

With this listing, Dubai further solidifies its position as a leading hub for regional and international debt listings, reaching a total value of $117 billion and reinforcing its prominence in the market. 

To mark the successful listing, Ravi PNC Menon, Co-Chairman of Sobha Realty, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the bell at the market-opening ceremony at Nasdaq Dubai. 

 

Demand for Islamic finance

Ali said: “This significant achievement not only underscores the robustness and attractiveness of the Dubai capital market but also highlights the increasing demand for Islamic finance instruments in the region. Nasdaq Dubai remains dedicated to fostering innovation and advancing the growth of the UAE financial market, and we are proud to offer a diverse range of investment products.”

 

Menon said: “The successful listing exhibits strong investor confidence in Sobha Realty's growth strategy and strong financial position. We were successful in attracting a diverse pool of investors through our Sukuk issuance, both domestically and internationally, which is a testament to our continued success and long-term vision. We hope to leverage this capital to shape our expansion strategies, contribute to the long-term development of the real estate sector, and create sustained value for our stakeholders.”   

 

Through this listing, Sobha's sukuk has paved the way for regional debut issuers by becoming the first corporate issuer from the region in a senior unsecured benchmark-sized format this year.-- TradeArabia News Service