Nasdaq Dubai has welcomed the listing of Binghatti Holding Limited’s debut USD 500 million green sukuk, marking an important milestone in the UAE’s sustainable finance journey. Binghatti Holding, one of Dubai’s fastest growing property developers, has taken a bold step into the world of sustainable finance by issuing this green sukuk.
This sukuk, issued under Binghatti’s USD 1.5 billion Trust Certificate Issuance Programme, matures in 2029 and is the company’s first ESG linked issuance. The offering attracted overwhelming interest, being oversubscribed by 4.3 times with orders exceeding USD 2.1 billion from investors in the region and beyond. Thanks to this strong demand, the sukuk was priced at a profit rate of 7.75 percent, which tightened from an initial guide of 8.125 percent.
The proceeds from this green sukuk will be used to finance a portfolio of green projects that support Binghatti’s sustainability framework. This move reflects Binghatti Holding’s commitment to the UAE’s Net Zero 2050 initiative and supports Dubai’s vision of promoting sustainable finance as a key pillar for economic growth.
What is Binghatti Holding’s Green Sukuk?
To understand the importance of this event, it is helpful to first know what a green sukuk is. A sukuk is an Islamic financial certificate, similar to a bond, that complies with Shariah law. Unlike traditional bonds, sukuks do not pay interest but offer returns based on asset ownership or profit sharing.
A green sukuk means the funds raised are dedicated exclusively to projects that have positive environmental benefits. These might include renewable energy, energy efficient buildings, and sustainable infrastructure. In Binghatti Holding’s case, the USD 500 million raised through this sukuk will be invested in projects aligned with their sustainability goals.
Binghatti Holding’s green sukuk is not only their first ESG linked issuance but also one of the largest green sukuk deals in the region. It demonstrates their commitment to sustainable development while providing investors with an ethical and Shariah compliant investment option.
Why is the Green Sukuk Significant?
The issuance and listing of Binghatti Holding’s green sukuk are significant for several reasons.
Supports UAE’s Climate Goals
The UAE has set ambitious targets to achieve net zero carbon emissions by 2050. Binghatti Holding’s green sukuk directly supports this goal by funding projects that reduce environmental impact and promote sustainability.
Advances Dubai’s Sustainable Finance Strategy
Dubai is working hard to become a global hub for sustainable finance. The listing of this green sukuk on Nasdaq Dubai reinforces the city’s position and encourages other companies to pursue sustainable funding options.
Demonstrates Strong Investor Confidence
The oversubscription of 4.3 times, with USD 2.1 billion in orders, clearly shows that investors, both regional and international, are keen to support sustainable and Shariah compliant financial products. This helps build a robust market for green finance.
Innovates Islamic Finance
By combining ESG principles with Islamic finance, Binghatti Holding’s green sukuk represents innovation in the financial sector. It shows how Islamic finance can evolve to meet modern sustainability challenges.
Strengthens Nasdaq Dubai’s Market Leadership
Nasdaq Dubai plays a vital role in the region’s capital markets, particularly in Islamic and sustainable finance. With this listing, the total value of Binghatti Holding’s sukuks on Nasdaq Dubai reaches USD 1.5 billion. The exchange now hosts over USD 141 billion in debt listings, highlighting its global standing.
Leadership Marks the Moment
The importance of this listing was celebrated by key figures in the company and the exchange. Ahmed Binghatti, Vice Chairman of Binghatti Holding, and Katralnada Binghatti, the company’s CEO, rang the market opening bell at Nasdaq Dubai. They were joined by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, and other senior executives.
Katralnada Binghatti expressed pride in the milestone, saying the sukuk issuance marks a major step in Binghatti’s journey towards sustainable and responsible growth. She highlighted how the oversubscription validates their unique vertically integrated business model and the confidence investors have in their vision.
She also emphasized Binghatti Holding’s commitment to environmentally conscious development and their contribution to the UAE’s Net Zero 2050 goals. According to her, this issuance supports Dubai’s aim to be a global center for sustainable finance.
Hamed Ali welcomed Binghatti Holding’s inaugural green sukuk, noting the growing investor appetite for ESG focused instruments. He described the listing as a demonstration of Nasdaq Dubai’s ability to connect UAE issuers with international investors and to support the UAE’s sustainable finance ambitions.
How Will the Funds Be Used?
The USD 500 million raised through the green sukuk will be allocated exclusively to projects that qualify as green under Binghatti’s sustainability framework. These projects include:
- Renewable energy installations such as solar and wind power
- Energy efficient building projects with reduced carbon footprints
- Environmentally responsible infrastructure developments
This ensures that investors’ funds are dedicated to activities that promote environmental sustainability and help reduce the overall carbon footprint of Binghatti Holding’s operations.
What is a Sukuk and Why Green Sukuk Matters?
A sukuk is a financial instrument issued according to Islamic law. Instead of earning interest, investors receive returns based on profits from assets or projects they partially own. This structure avoids interest payments, which are prohibited in Islam.
A green sukuk adds an environmental responsibility layer to this. The money raised is used only for projects that have measurable positive impacts on the environment. This combination of ethical finance and sustainability meets the needs of many modern investors.
Green sukuks benefit investors by offering:
- Competitive financial returns
- Shariah compliant ethical investment options
- Opportunities to support global sustainability goals
- Diversification into a growing and unique asset class
Nasdaq Dubai’s Growing Role in Green Finance
Nasdaq Dubai has become a key platform for Islamic finance and green finance in the region. Its ability to host complex sukuk issuances, including green sukuks, makes it attractive for issuers and investors.
Currently, Nasdaq Dubai has over USD 141 billion worth of debt listings, making it one of the largest global venues for Islamic and sustainable finance. The exchange offers a transparent, regulated, and trusted environment, which helps connect UAE issuers with investors worldwide.
By listing Binghatti Holding’s green sukuk, Nasdaq Dubai continues to enhance its reputation as a leading market for green finance products and supports the UAE’s broader sustainability goals.
The Future of Green Sukuk in the UAE
Binghatti Holding’s debut green sukuk is expected to encourage more companies to explore this financing option. As sustainability becomes an increasingly important focus, the demand for green and ESG compliant investments is growing.
Future trends likely include:
- Increased issuance of green sukuks by real estate developers, energy companies, and infrastructure firms
- Stronger government support and clear regulatory frameworks for sustainable finance
- Rising investor interest in ESG and Shariah compliant financial instruments
- Continued growth of Nasdaq Dubai as a global hub for sustainable Islamic finance
The green sukuk market has a bright future in the UAE and the broader Middle East region.
What Does This Mean for Investors?
Investors in Binghatti Holding’s green sukuk enjoy several benefits:
- Ethical investment that supports projects helping protect the environment
- Compliance with Islamic principles for Shariah compliant options
- Attractive returns with a profit rate priced at 7.75 percent
- Portfolio diversification with a growing asset class
- Positive impact by funding sustainable projects combating climate change
Conclusion
The listing of Binghatti Holding’s USD 500 million debut green sukuk on Nasdaq Dubai is a landmark moment for sustainable finance in the UAE. It combines Islamic finance principles with modern ESG goals, creating an investment that is both ethical and impactful.
The strong demand and oversubscription show investors are eager for Shariah compliant green products. This issuance also supports the UAE’s Net Zero 2050 initiative and Dubai’s ambition to become a global center for sustainable finance.
With Binghatti Holding’s sukuk listings now totaling USD 1.5 billion on Nasdaq Dubai, and the exchange’s overall debt listings exceeding USD 141 billion, the future of green sukuks in the region looks very promising.
Nasdaq Dubai continues to lead the way by providing a transparent and trusted platform for sustainable Islamic finance. Binghatti Holding’s green sukuk sets an example that more companies are likely to follow, helping the UAE achieve its sustainability targets while offering investors attractive, responsible investment opportunities.
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