Photo used for illustrative purpose.

Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs, reaffirmed the UAE’s keenness to strengthen the Islamic economy and build a pioneering investment infrastructure to boost the Islamic economy as one of the key pillars of the national economy.

Al Hussaini said, “The Ministry of Finance cooperates with all its partners, foremostly the Central Bank of the UAE, to attract investments and deploy them in Islamic economy channels. The T-Sukuk are Sharia-compliant financial certificates, and they will be traded to reflect the local return on investment, support economic diversification and financial inclusion, and contribute to achieving comprehensive and sustainable economic and social development goals.”

Additionally, he emphasised that issuing the T-Sukuk in local currency will contribute to building a local currency bond market, diversifying financing resources, boosting the local financial and banking sector, and providing safe investment alternatives for local and foreign investors.

He also noted that this issuance will help build the UAE Dirham-denominated yield curve, thereby strengthening the local financial market and developing the investment environment.

Khaled Mohamed Balama, Governor of CBUAE, emphasised the importance of issuing Islamic treasury sukuk in developing local sukuk markets, diversifying financing resources, and strengthening the infrastructure to support investment options and alternatives that are compatible with the provisions of Islamic Sharia, to develop the Islamic financial sector, improve the investment environment, and solidify the UAE’s position as a leading global hub in the Islamic finance sector.

He added, “The issuance of Islamic treasury sukuk comes within the UAE’s commitment to developing capital market activities and consolidating its position as a global financial hub. This issuance reaffirms the strength and stability of the financial system and the confidence of local and international investors in the UAE’s ability to develop the financial sector following monetary policies and strategic plans.”

Balama noted, “With the development of an effective infrastructure for the financial markets, we are confident that this issuance will contribute to supporting the market for bonds denominated in the local currency and issued by the public sector in the country. It will also enhance the competitiveness of the local financial markets and enable market participants in the UAE to maintain a single, transparent, diversified and sustainable liquidity pool in Dirhams.

WAM