Latest news with #T-Sukuk
Hi Dubai
4 days ago
- Business
- Hi Dubai
UAE Strengthens Global Leadership in Islamic Finance and Halal Industry
The UAE is accelerating its position as a global powerhouse in Islamic finance and the halal industry, launching a sweeping national strategy to drive innovation, economic diversification, and international competitiveness. The comprehensive plan, unveiled in May, outlines an integrated ecosystem for Islamic finance—including banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and non-banking services—anchored in global standards. This move is backed by modern infrastructure, progressive regulation, and targeted investment in knowledge-based growth. Islamic banking continues to expand its footprint, with recent data from the Central Bank showing it accounts for 18% of banking assets and nearly 23% of credit. As of February 2025, Islamic banks in the UAE extended AED503.5 billion in total credit, a 16% year-on-year rise. Deposits surged 16.9% to AED595.3 billion. The Islamic Sukuk sector is also surging. The launch of dirham-denominated Islamic Treasury Sukuk (T-Sukuk) in 2023 marked a milestone. Nasdaq Dubai now hosts over US$95.7 billion in listed Sukuk, placing the UAE among the world's top Sukuk listing centres. The country ranked fourth globally in Islamic finance markets by total assets in 2023, according to the Islamic Finance Development Indicator. Alongside finance, the UAE is scaling up its halal sector, aiming to grow exports from AED74 billion to AED315 billion by 2031. Local manufacturers are increasingly tapping into this growing market, driven by rising global demand for halal-certified goods. Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Group, called the strategy a game-changer for positioning the UAE as a global halal production centre, citing the country's logistics advantages and world-class infrastructure. News Source: Emirates News Agency
Gulf Today
6 days ago
- Business
- Gulf Today
UAE's Islamic finance and halal industry poised for robust growth
The UAE continues to cement its status as a leading global hub for Islamic finance and the halal industry, aligned with a comprehensive development vision aimed at diversifying the national economy and enhancing global competitiveness. Backed by forward-thinking government policies, a modern regulatory framework, and cutting-edge financial and industrial infrastructure, both sectors are witnessing dynamic growth. The UAE is investing heavily in a knowledge- and innovation-based economy, with Islamic finance and halal products playing key roles in this transformation. In May, the UAE launched a national strategy for Islamic finance and halal industry development. The plan sets out to create an integrated ecosystem for Islamic financial activities, including banking, Takaful (Islamic insurance), Sukuk (Islamic bonds), and non-banking financial services-aligned with international best practices and standards. According to February data from the Central Bank of the UAE, Islamic banks now account for approximately 18 per cent of total banking assets and 22.8 per cent of total credit within the national banking sector. The Islamic Sukuk market, in particular, has expanded significantly. Notably, the federal government launch of the dirham-denominated Islamic Treasury Sukuk (T-Sukuk) in 2023, signaling a new era for the sector. The UAE is now recognised as one of the world's largest Sukuk listing centres. As of May, Sukuk listed on Nasdaq Dubai exceeded $95.7 billion, reinforcing the country's position as a global hub for Sharia-compliant fixed-income instruments. In the 2023, the country was ranked fourth globally in Islamic financial markets by assets, according to the 2023 Islamic Finance Development Indicator based on total assets. Jamal Saleh, Director-General of the UAE Banks Federation (UBF), noted that the strategy outlines ambitious goals to elevate the Islamic economy's role both domestically, regionally, and internationally. In statements to the Emirates News Agency, Saleh highlighted the UAE's successful development of financial systems that have empowered the Islamic banking sector as part of the nation's broader diversification agenda. He pointed to significant strides in Islamic banking, Sukuk issuance, and broader Sharia-compliant finance. Saleh also noted the sector's impressive growth trajectory. As of February 2025, total credit granted by Islamic banks reached Dhs503.5 billion, a 16 per cent year-on-year increase. Private sector credit alone stood at Dhs350.4 billion, growing 13.2 per cent annually. Meanwhile, deposits at Islamic banks surged to Dhs595.3 billion, marking an annual growth rate of 16.9 per cent. Parallel to its financial achievements, the UAE is asserting itself as a global halal industry hub. Under the newly approved national strategy, the UAE aims to increase halal exports from Dhs74 billion to Dhs315 billion by 2031, leveraging its strategic location and world-class infrastructure. Saleh Lootah, Chairman of the UAE Food and Beverage Manufacturers Group, in statements to WAM, said that the strategy is a landmark step toward establishing the UAE as a global halal production centre. He highlighted growing local manufacturer interest in expanding into this vital sector, particularly as global demand for halal products accelerates. According to a report by Bonafide Research on the halal food and beverage market in the UAE, the market size is projected to exceed $31.27 billion by 2029. This growth reflects the increasing demand for halal-certified products, both within the country and globally, as consumers become more conscious of dietary and ethical standards. The UAE's strategic location as a global trade and tourism hub plays a key role in driving this expansion. Its position enhances the country's appeal to both local and international consumers seeking trusted halal-certified goods, reinforcing the UAE's reputation as a leading centre for halal commerce. Meanwhile the Islamic finance sector in the UAE benefits from a dynamic economic environment and advanced regulatory policies that support Sharia-compliant financial activities. Since the establishment of the UAE's first Islamic bank in 1975, the sector has grown significantly over the decades, becoming a fundamental pillar of the national economy. The industry encompasses Islamic banks, Islamic windows in conventional banks, and sukuk (Islamic bonds), which have witnessed rapid growth in both domestic and international markets. The UAE is committed to developing economic policies and legislation to enhance Islamic finance and the broader Islamic economy. These efforts align with national objectives to ensure sustainable economic growth and establish the UAE as a global hub for the Islamic economy. WAM
Mid East Info
23-05-2025
- Business
- Mid East Info
Islamic Treasury Sukuk Auction for May 2025 Attracts Bids Worth AED 6.93 Billion - Middle East Business News and Information
Marking an oversubscription of 6.3 times. Yield to Maturity (YTM) of 3.99% for the May 2027 tranche and 4.06% for the newly issued 5-Year tranche maturing in May 2030, with a tight spread of 2 and flat basis points respectively, above comparable US Treasuries at the time of issuance. Abu Dhabi, UAE: The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, announced the successful completion of the May 2025 auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion. This issuance forms part of the T-Sukuk issuance program for the year 2025, as published on the MoF's official website. The auction attracted robust demand from eight primary dealers across both tranches – re-opening of the May 2027 tranche and the newly issued 5-year tranche maturing in May 2030. The total bids received reached AED 6.93 billion, reflecting an oversubscription rate of 6.3 times, underscoring the strong confidence of investors in the UAE's creditworthiness and Islamic finance framework. The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.99% for the May 2027 tranche and 4.06% for the May 2030 tranche. These yields represent a tight spread of 2 and flat basis points, respectively, above comparable US Treasuries at the time of issuance. The Islamic T-Sukuk program plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Arabian Business
23-05-2025
- Business
- Arabian Business
UAE's Islamic T-Sukuk auction attracts AED 6.93bn in bids
The UAE Ministry of Finance announced the successful completion of the May 2025 auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion. The issue received an overwhelming response, with the total bids reaching AED 6.93 billion, amounting to an oversubscription rate of 6.3 times. The overwhelming response underscores the strong confidence of investors in the country's creditworthiness and Islamic finance framework, the ministry said. The issuance forms part of the T-Sukuk issuance programme for the year 2025. The auction attracted robust demand from eight primary dealers across both tranches – the reopening of the May 2027 tranche and the newly issued 5-year tranche maturing in May 2030, the ministry said. The Islamic Treasury Sukuk auction continues to succeed in enhancing the investment environment and boosting the competitiveness of the local debt capital market. Discover the results for May. #MoFUAE — وزارة المالية | الإمارات (@MOFUAE) May 22, 2025 The auction results highlighted competitive, market-driven pricing with a yield to maturity (YTM) of 3.99 per cent for the May 2027 tranche and 4.06 per cent for the May 2030 tranche. The Islamic T-Sukuk programme plays a vital role in supporting the development of the UAE's dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Besides, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE's long-term economic sustainability and growth objectives.
Hi Dubai
23-05-2025
- Business
- Hi Dubai
Ministry of Finance Completes AED1.1 Billion Islamic T-Sukuk Auction with Strong Investor Demand
The UAE Ministry of Finance has successfully concluded its May 2025 auction of Islamic Treasury Sukuk (T-Sukuk), raising AED1.1 billion amid overwhelming investor interest and robust demand. Conducted in coordination with the Central Bank of the UAE, the auction attracted total bids worth AED6.93 billion from eight primary dealers, reflecting an oversubscription rate of 6.3 times. The offering included a re-opening of the May 2027 tranche and a newly issued 5-year tranche maturing in May 2030. Yields remained competitive, with the May 2027 tranche recording a Yield to Maturity (YTM) of 3.99%, while the May 2030 tranche closed at 4.06%. Both yields were closely aligned with U.S. Treasury benchmarks, demonstrating strong market confidence in the UAE's fiscal strength and Islamic finance infrastructure. This issuance forms part of the Ministry's broader 2025 T-Sukuk programme, aimed at developing a dirham-denominated yield curve and providing secure investment options for institutional investors. Officials highlighted that the success of the auction supports not only the UAE's domestic debt market but also reinforces the country's long-term economic sustainability goals. News Source: Emirates News Agency
