Dubai Investments Park (DIP) has made its debut $300m Sukuk offering NASDAQ Dubai. The listing marks the first US dollar Sukuk issued from the Middle East this year and brings the total of new offerings of Sukuk in Dubai since the beginning of 2013 to $12.55bn.
DIP, which operates as a residential community in the Middle East, was advised by investment bank Alpen Capital.
Emerging markets investors were responsible for a high percentage of the orders. Europe and UK accounted for 49%, Middle East for 32%, Asia for 17%. 65% of the Sukuk was distributed to asset and fund managers, 27% to banks, 7% to private banks and insurance and pension funds held 1%.
Essa Kazim, chairman of Dubai Financial Market (DFM) and Secretary General of Dubai Islamic Economy Development Centre, says Dubai’s rapid growth towards becoming the global centre for Sukuk is set to gain momentum in 2014. "DIP’s decision to list in Dubai demonstrates the important role played by the Islamic capital markets in supporting the funding requirements of a variety of companies that underpin the Emirate’s growth and development.”
Dubai is the third largest centre for listed Sukuk globally by value.
source: FTSE Global Markets