His Excellency Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, rang the opening bell for trading on Nasdaq Dubai, marking the listing and trading of the first issuance of T-Sukuk Islamic Treasury Sukuk denominated in UAE dirhams, which was issued by the United Arab Emirates represented by the Ministry of Finance as an issuer and in cooperation with the UAE Central Bank as an agent. for issuance and payment, with a record auction size of up to 1.1 billion dirhams.
The issuance of T-Sukuk Islamic treasury sukuk denominated in UAE dirhams includes a series of issuances of Islamic treasury sukuk, in order to attract a new class of investors to support the sustainability of economic growth, enhance the economic competitiveness of the country, and contribute to the provision of high-quality Islamic assets at competitive prices, which in turn supports the Emirates Bank. Central Bank in managing liquidity within the banking sector and raising the volume of financial investments, which will reflect positively on the country’s economy, investment environment, per capita income and gross national income.
The bell-ringing ceremony was held in the presence of officials from the Ministry of Finance, the Central Bank of the United Arab Emirates, Nasdaq Dubai, CEOs of the eight major participating banks, in addition to a number of senior officials from various relevant authorities.
The inaugural issuance of the T-Sukuk Islamic Treasury Sukuk program generated strong demand from the eight main distributor banks, with bids of AED 8.3 billion received, exceeding the subscription volume by 7.6 times.
The requests were distributed on Islamic treasury sukuk in dirhams through each of the two tranches, to achieve 550 million dirhams for two-year sukuk, and 550 million dirhams for 3-year sukuk, with a total issuance of 1.1 billion dirhams.
Other tranches of Islamic treasury sukuk will be issued with various periods of up to 5 years initially, and will be followed by the issuance of a ten-year tranche at a later time. His Excellency Mohammed bin Hadi Al Husseini said that the issuance of Islamic treasury sukuk denominated in UAE dirhams contributes to expanding the scope of Islamic banking, as it is one of the most important tools for managing monetary policy and liquidity to finance development programs and projects, and it also provides certificates and securities compatible with Islamic law, for trading in the secondary market. Together with the main distributors, and reflecting the current return on investment, these sukuk will contribute to stimulating the stock market in general and strengthening the base of Islamic securities in particular, providing safe and rewarding investment alternatives that attract new segments of local and international investors.
He stressed that the record results achieved by the first auction are nothing but a new confirmation of the creditworthiness of the UAE as one of the most competitive and advanced economies in the world, strengthening its position as a leading investment destination in the field of Islamic economy.
His Excellency said: “The issuance of Islamic treasury sukuk constitutes a new step towards achieving the objectives of the comprehensive and sustainable economic and social development of the country, as it contributes to the development of the financial market and the investment environment in the country, by attracting financial investments, and revitalizing the local financial and banking sector, to diversify financing sources, which enhances In turn, the status of the state as an international center of the Islamic economy.
For his part, His Excellency Khaled Mohammed Balama, Governor of the Central Bank of the United Arab Emirates, said: “The first issuance of the T-Sukuk Islamic Treasury Sukuk program denominated in UAE dirhams contributes to the consolidation of the country’s competitive position as an advanced global financial center, based on its ability to diversify the activities of financial markets, Strengthening the infrastructure to support investment options and alternatives that are compatible with the provisions of Islamic Sharia, consolidating the strength and stability of the financial system, raising the volume of financial investments, and raising the confidence of local and international investors in the state’s financial system, which leads to the development of the financial sector with a strategic vision, and the dedication of the UAE’s leading role in the global Islamic economy. .” His Excellency added: “The record success achieved by the first auction of issuing Islamic sukuk denominated in UAE dirhams proves the effectiveness of sound financial and economic policies, the strength of creditworthiness and the efficiency of the country’s financial sector, and the stimulating investment environment that it enjoys globally, and is capable of diversifying investment and financial alternatives, and continuing growth.” sustainable development according to future visions and plans. We are pleased with our partnership with the Ministry of Finance in developing the financial market and improving the investment environment in the country.”
In turn, Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai, said: “The issuance of Islamic treasury sukuk, T-Sukuk, represents an important development for the capital markets in the UAE, as it works to attract more diversified investment classes to the country, and provides an important investment tool for services.” Islamic banking Today, this issuance also contributes to strengthening Dubai’s position as one of the largest centers for listing and trading sukuk in the world, as the total value of sukuk listed in Dubai reached $77.67 billion, which paves the way for regional and international investors to strengthen their ties with the UAE government, as well as Expanding their investment options in the country. Our mission supports the UAE Central Bank’s ambitious strategy towards developing a strong fixed income market in the country, by providing investors with opportunities to invest in sovereign issues and a more effective standard for the yield curve on debt instruments.”
The list of main distributors that undertake the task of developing the secondary market includes eight banks: Abu Dhabi Islamic Bank, Dubai Islamic Bank, Abu Dhabi Commercial Bank, Emirates NBD Bank, First Abu Dhabi Bank, Mashreq Bank, HSBC Bank, and Standard Chartered.
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