THE Islamic Development Bank (IDB) will set up a $10bn sukuk issuance programme on the Nasdaq Dubai exchange, a boost to Dubai’s efforts to become a top centre for Islamic finance in competition with other cities.
It would be the Jeddah-based IDB’s third sukuk program – it already issues Islamic bonds in London and Kuala Lumpur – and its first in a Middle Eastern country. The international lender, which has 56 member countries, promotes economic development in Muslim countries and communities.
No time frame was given for the launch of the IDB’s programme. Its sukuk are highly sought after by Islamic investors because of their AAA credit rating, so they could offer a much-needed boost to trading volumes in Dubai and encourage more issuers from outside the emirate to choose Dubai as their listing venue.
The IDB also plans to expand its sukuk programme on the London Stock Exchange this month to $10bn from the current $6.5bn. It has issued 15 sukuk in London since 2005.