Nasdaq Dubai has welcomed a $500 million Sukuk issued by Mashreq Bank, marking the lender’s first-ever Islamic bond listing on the exchange. The Sukuk, launched through Mashreq Al Islami Sukuk Company Limited, falls under the bank’s $2.5 billion Trust Certificate Issuance Program.
Following high demand in the primary market, the Sukuk was admitted as a secondary listing. The issuance, which matures in 2030, drew strong interest from global investors. Orders totaled $2.90 billion, making the offering nearly six times oversubscribed. As a result, final pricing narrowed to UST +105 basis points, with a fixed profit rate of 5.03% per year.
A Boost for Dubai’s Islamic Finance Leadership
With this listing, the total value of Sukuk on Nasdaq Dubai now stands at $97.20 billion. The exchange has further solidified its reputation as one of the world’s largest hubs for Sharia-compliant finance. Across all categories, debt listings on Nasdaq Dubai have surpassed $140 billion, spread over 163 issuances.
Commenting on the occasion, Ahmed Abdelaal, Group CEO of Mashreq, stated:
“Our debut listing on Nasdaq Dubai marks a new chapter in Mashreq’s capital markets journey. This Sukuk issuance not only attracted strong investor interest but also reflects our disciplined approach to funding in a complex macro environment.”
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), added:
“Dubai continues to strengthen its capital markets infrastructure. We remain focused on offering a transparent and efficient platform that meets diverse financing needs while promoting sustainable growth across the financial ecosystem.”
Financial Context and Market Outlook
Although the listing comes at a pivotal moment for Mashreq, the bank continues to perform solidly. In Q1 2025, Mashreq reported a 12% year-on-year decline in net profit after tax, posting AED 1.79 billion compared to AED 2.04 billion in the same period last year.
Still, the oversubscription of the Sukuk indicates strong investor confidence. It reflects a wider trend of rising demand for Islamic fixed-income products, particularly from regional and international investors seeking stable returns amid market volatility.
By tapping into this momentum, Mashreq is not only diversifying its funding base but also contributing to Dubai’s broader efforts to become a global leader in Islamic and sustainable finance.
