Nasdaq Dubai Adds Historic $1 Billion RAK Government Sukuk

Nasdaq Dubai welcomes USD 1 billion sukuk listing by the Government of Ras Al Khaimah. The listing attracted remarkable investor interest as the order book reached $4.4 billion. The 10-year senior unsecured sukuk was priced at a profit rate of 5.038%, showing market confidence in the emirate’s economic stability. RAK government’s resilient credit ratings of A from Standard & Poor’s and A+ from Fitch Ratings validate this trust.

The total value of sukuk listed on Nasdaq Dubai now exceeds $92.7 billion with this listing, making it a leading global hub for Islamic finance. RAK Capital’s $2 billion trust certificate issuance program includes this sukuk that will support the emirate’s economic growth and infrastructure plans. The listing creates a transparent platform for global investor engagement, and the sukuk’s pricing at 80 basis points over U.S. Treasuries reflects the Emirates market’s strong investor confidence.

RAK Government Secures $1 Billion Through Oversubscribed Sukuk

Ras Al Khaimah’s Government, through its Investment and Development Office, closed a landmark 10-year senior unsecured sukuk offering on March 5, 2025. The AED 3.67 billion sukuk represents the emirate’s first return to international debt capital markets in a decade.

The issuance got substantial investor interest. The order book exceeded AED 16.16 billion. This strong demand helped the government compress the final pricing by 40 basis points to reach 10-year US Treasury plus 80 basis points. The sukuk’s profit rate stands at 5.038%.

RAK Capital started with an original Pricing Guidance of 10-year US Treasury plus 120 basis points. The reliable investor response allowed them to achieve a negative New Issue Concession of -10 basis points, which showcases the emirate’s strong credit position.

Investors came from several regions globally. The MENA region led with 57.8% of subscriptions. The UK and continental Europe accounted for 35%, while Asia and other regions contributed 7.2%. This broad investor base shows global confidence in Ras Al Khaimah’s economic fundamentals.

The sukuk structure lines up with recent Shari’a developments from the UAE Central Bank Higher Shari’a Authority. A specific government decree supports the sale of ijara assets to ensure real estate ijara assets can be enforced.

RAK launched the issuance under its AED 7.34 billion Trust Certificate Issuance Program on February 28. Before the offering, S&P Global Ratings and Fitch confirmed their ‘A’ and ‘A+’ ratings for the emirate with stable outlooks.

Leading financial institutions aided the transaction:

• Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank served as Joint Global Coordinators
• Citi and Emirates NBD Capital acted as Sukuk Structuring Agents

The sukuk will settle on March 12, 2025. The proceeds will go toward general government and budgetary purposes.

Emirates NBD Capital Leads Consortium in Structuring Historic Deal

Leading financial institutions came together to coordinate a complex financial deal for Ras Al Khaimah’s landmark sukuk issuance. Emirates NBD Capital and Citi led the structuring of this Islamic bond as primary Sukuk Structuring Agents.

Six major financial powerhouses joined forces as Joint Global Coordinators: Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK, and Standard Chartered Bank. This team effort marked UAE’s first sovereign issuance in 2025, which happened during a busy period of sukuk and Reg S bond issuances by banks and corporations.

The team made sure the issuance process followed Shariah principles strictly. Their expertise helped achieve precise pricing and optimal market positioning of the sukuk. The team picked the perfect time to launch, as it coincided with other major market activities, including First Abu Dhabi Bank’s USD 600 million sukuk and Damac’s USD 750 million offering.

Changes keep coming in the financial world, as Sharjah Islamic Bank gets ready to launch a USD 500 million Reg S five-year sukuk. Emirates NBD has also revealed its plans to issue a USD 1 billion Reg S additional tier 1 capital security. These developments highlight the UAE‘s growing Islamic finance sector.

The joint lead managers positioned the sukuk well, which led to massive oversubscription. Order books exceeded AED 7.34 billion, not counting interest from the joint lead managers. This strong response helped secure favorable pricing terms and showed the team’s ability to attract investors worldwide.

This successful deal has strengthened Emirates NBD Capital’s position in debt capital markets, especially in Islamic finance structuring. The partnership between local and international financial institutions proves UAE’s ability to handle complex sovereign financial instruments while staying true to Islamic banking principles.

Nasdaq Dubai Strengthens Position as Global Sukuk Hub

Nasdaq Dubai’s latest sukuk listing has pushed its total sukuk value above AED 340.39 billion. This achievement strengthens its position as a leading Islamic finance hub. The exchange now features 157 debt security issuances that total AED 500.12 billion.

The UAE holds a 6.6% share of worldwide outstanding sukuk. This places it fourth globally after Malaysia, Saudi Arabia, and Indonesia. UAE-based issuers have been particularly active throughout 2024, with sukuk issuance volumes reaching AED 52.88 billion.

Market performance goes beyond traditional sukuk. The UAE has become a frontrunner in environmental, social, and governance (ESG) sukuk issuances during 2024’s first half. Notable corporate issuances highlight this leadership:

• Dubai Islamic Bank’s AED 3.67 billion sustainable sukuk
• Aldar Investment Properties’ AED 1835.97 million inaugural green sukuk
• Emirates Islamic Bank’s AED 2753.96 million sustainable sukuk

UAE sukuk activity has doubled to AED 31.58 billion in the first half of 2024. Sukuk now makes up 20% of UAE’s debt capital market. This growth matches broader market trends, though analysts expect issuance volumes to moderate slightly toward year-end.

The UAE maintains the second-largest share of outstanding sukuk in the GCC region at 16.2%, behind Saudi Arabia’s 71%. Market strength reflects in its credit quality. Fitch Ratings has assessed USD 26.7 billion in UAE sukuk as investment grade, which represents 92.5% of rated securities.

UAE’s Islamic finance sector continues to grow steadily. Ten takaful insurance companies contribute AED 4 billion in gross written contributions. The Central Bank of UAE’s Higher Shari’ah Authority encourages Islamic financial institutions to embrace sustainable finance. They view sustainability goals not just as recommended (Mandoob) but potentially obligatory (Wajib) under Shari’ah principles.

RAK’s successful $1 billion sukuk listing proves the emirate’s economic resilience and smart financial planning. The order book reached $4.4 billion, showing strong market confidence in RAK’s economic fundamentals. This key transaction and the emirate’s solid credit ratings have strengthened RAK’s position in global financial markets.

Emirates NBD Capital partnered with other financial powerhouses to showcase UAE’s reliable financial infrastructure. Their market expertise led to precise pricing with a final profit rate of 5.038%. Investors from MENA, Europe, and Asia participated extensively, which highlights the global appeal of UAE’s Islamic financial instruments.

Nasdaq Dubai has emerged as a leading sukuk hub with listings worth $92.7 billion. UAE holds 6.6% of worldwide outstanding sukuk and leads in ESG sukuk issuances. This points to continued growth opportunities in the sector. The latest listing adds another milestone to UAE’s path toward becoming a dominant force in the global Islamic financial world.