Nasdaq Dubai has officially welcomed the listing of a $500 million Sukuk (Islamic bond) issued by Mashreq, one of the UAE’s leading financial institutions. This development is seen as a significant step in the growth of Islamic finance and highlights Dubai’s increasing influence as a global capital for Sharia-compliant financial instruments.
The Mashreq Sukuk listing not only enhances the depth of Nasdaq Dubai’s bond market but also reflects the continued confidence of financial institutions in Dubai’s well-regulated and investor-friendly environment.
Why this Sukuk listing matters
A Sukuk is an Islamic financial certificate that operates similarly to a bond in Western finance. However, unlike traditional bonds, Sukuks comply with Islamic laws that forbid interest payments. Instead, investors earn returns through profit-sharing arrangements tied to underlying assets.
The $500 million Sukuk by Mashreq is part of the bank’s strategic funding initiatives and aims to support its growth and lending activities, both regionally and globally. With a maturity period of five years, this Sukuk attracted strong interest from international and regional investors, showing solid demand for Sharia-compliant financial instruments.
Strong support from investors
Mashreq’s Sukuk was well-received in the global market. It was oversubscribed, indicating strong confidence in the bank’s stability, future prospects, and the sound structure of its Sukuk offering.
The listing adds to Nasdaq Dubai’s expanding portfolio of Islamic finance instruments, cementing its position as one of the most important Sukuk listing hubs in the world. With listings from governments, banks, and companies from across the Middle East and beyond, Nasdaq Dubai continues to attract issuers looking for transparency and international visibility.
Statements from the leadership
In a statement, Ahmed Abdelaal, Group CEO of Mashreq, said:
“This Sukuk issue is a key part of our funding strategy and reflects our strong standing in the international capital markets. Listing it on Nasdaq Dubai gives us access to a wide range of investors and provides greater visibility.”
Meanwhile, Hamed Ali, CEO of Nasdaq Dubai and DFM (Dubai Financial Market), welcomed Mashreq’s decision to list its Sukuk on the exchange, stating:
“The successful listing of Mashreq’s $500 million Sukuk further strengthens Nasdaq Dubai’s status as a leading marketplace for Islamic finance products. We are committed to supporting issuers in meeting their funding goals while boosting market depth.”
Dubai’s position in the global Sukuk market
Dubai has long aimed to become the capital of the Islamic economy, and listings like this support that vision. The emirate has consistently been among the top global centers for Sukuk issuances, with Nasdaq Dubai offering a platform that combines regional advantages with international best practices.
With over $100 billion in Sukuk listings, Nasdaq Dubai continues to attract prominent names in finance, including sovereign entities and top-tier banks like Mashreq. The growing number of Sukuk on the exchange is a reflection of the increasing global interest in Islamic finance, especially among investors looking for ethical and asset-backed instruments.
What this means for the future
The Mashreq Sukuk listing on Nasdaq Dubai is more than just a financial milestone. It signals a shift in how regional and global investors view Islamic finance. As environmental, social, and governance (ESG) principles become more important, Sukuks offer a sustainable and ethical investment option.
This move may encourage other financial institutions in the UAE and the wider Middle East to explore Sukuk as a reliable funding tool. It also builds momentum for Dubai to solidify its role as a global financial hub, not just for Islamic finance but for the broader bond and capital markets.
Key takeaways: Mashreq’s $500 million Sukuk listing
- Issuer: Mashreq Bank
- Amount: $500 million
- Instrument Type: Sukuk (Islamic bond)
- Listing Platform: Nasdaq Dubai
- Maturity: 5 years
- Investor Response: Oversubscribed, strong global demand
- Purpose: General corporate funding and growth initiatives
About Mashreq
Founded in 1967, Mashreq Bank is one of the oldest privately owned banks in the UAE. Known for its innovation and strong customer service, Mashreq has consistently been at the forefront of digital banking transformation in the region.
The bank has expanded its footprint internationally, with operations in Europe, the United States, Asia, and the Middle East. The Sukuk issuance further aligns with Mashreq’s goals to diversify its funding sources and tap into the global Islamic finance market.
About Nasdaq Dubai
Nasdaq Dubai is the region’s international financial exchange, serving the Middle East, North Africa, and South Asia. It operates under the Dubai International Financial Centre (DIFC) framework and is regulated by the Dubai Financial Services Authority (DFSA).
The platform allows listings from both regional and global issuers and is known for its transparency, efficiency, and investor accessibility. Nasdaq Dubai has built a strong reputation for Sukuk and bond listings, drawing interest from institutional investors worldwide.
Conclusion
The Mashreq Sukuk listing on Nasdaq Dubai is a powerful signal of growing investor trust in Islamic finance and the strength of Dubai’s capital markets. It showcases how established financial institutions are tapping into ethical investment avenues to meet their funding needs and expand their global presence.
As interest in sustainable and Sharia-compliant financial products continues to grow, Nasdaq Dubai is likely to play a key role in shaping the future of Islamic capital markets. The success of Mashreq’s listing may also inspire more regional issuers to enter the Sukuk space, reinforcing Dubai’s ambitions of being a top global financial center.
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