Indonesia marks listing of $2b green sukuk on Nasdaq Dubai

Business Bureau, Gulf Today

His Excellency Husin Bagis, the Indonesian Ambassador to the UAE accompanied by His Excellency Ridwan Hassan, Consul General of the Republic of Indonesia in Dubai, on Sunday rang the Nasdaq Dubai market-opening bell to celebrate the listing of two green Sukuk issued by the government of Indonesia, with a total value of two billion US dollars.

Indonesia intends to use the capital raised by the Sukuk for a variety of projects with an emphasis on sustainable development. One Sukuk is valued at $1.25 billion and the other at $750 million.

The listings underline the close relations between the UAE and Indonesia, the world’s most populous Muslim country, as well as Dubai’s growth as the global capital of the Islamic Economy.

His Excellency Husin Bagis, the Indonesian ambassador to the UAE, said: “Our two Sukuk were very well received by investors, reflecting the growing reach and importance of the Islamic capital markets in Muslim countries and globally. As we expand our support for the Sukuk sector including to fund vital sustainable development initiatives, we look forward to further strengthening our relationship with Dubai as the leading centre globally for Islamic bond listings.” The Indonesian government is the largest Sukuk issuer on Nasdaq Dubai by both value and number of listings, with securities now totalling $15 billion from 11 issuances.

His Excellency Essa Kazim, Governor of Dubai International Financial Centre, Secretary General of Dubai Islamic Economy Development Centre, and Chairman of Dubai Financial Market, said: “We are delighted to partner with Indonesia to maintain the growth of the Islamic finance markets for the benefit of all participants and the wider economy. This successful collaboration underlines Dubai’s growth as the global Capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai.

The total value of all Sukuk listed on Dubai’s exchanges has now reached 61.5 billion US dollars, the largest amount of any listing centre in the world.

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “Nasdaq Dubai is committed to supporting the global expansion of the Sukuk sector by further enhancing its streamlined listing process, as well as its comprehensive post-listing services. We are preparing for a wide range of new listings in coming months from UAE, regional and global issuers, drawing on Dubai’s deep-rooted knowledge and understanding of the Sukuk sector.” Hamed Ali, Chief Executive of Nasdaq Dubai, said: “The exchange is delighted to strengthen the close cooperation that we have enjoyed with the Indonesian government since its first Sukuk listing with Nasdaq Dubai in 2014. We are positioned to welcome many further listings from government, public sector and private sector issuers who can benefit from the global visibility that we provide and our close links to international and regional investors. We congratulate the government of Indonesia on becoming the first sovereign issuer of green Sukuk in the world.” Indonesia’s two green Sukuk listed on Nasdaq Dubai on February 20, 2019.

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).

The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).

Last month, Nasdaq Dubai welcomed the listing of a $1.5 billion Sukuk by Islamic Development Bank (IDB). The listing underlines Dubai’s role as the largest centre globally for Sukuk listings by nominal value currently totaling $60.89 billion.

IDB now has 10 Sukuk listed on the Middle East’s international financial exchange with a total value of $12.54 billion.

The multilateral lender, which finances development across its 57 member countries, first listed a Sukuk on Nasdaq Dubai in 2014.

IDB’s activities include building partnerships between governments, the private sector and civil society; increasing skills and knowledge sharing; focusing on science, technology and innovation led solutions to development challenges; promoting global development that is underpinned by Sharia’a-compliant sustainable financing structures; and fostering collaboration between its members nations to focus on the betterment of humanity.