Indonesia's Sukuk Listing Boosts Dubai's Financial Hub
Nasdaq Dubai welcomes significant Sukuk issuances from Indonesia, reinforcing Dubai's position as a global leader in Islamic finance.
Summary
The Republic of Indonesia's Sukuk issuances on Nasdaq Dubai highlight Dubai's leading role in Islamic finance. With USD 2.75 billion added, the total Sukuk listings in Dubai reach USD 98.9 billion.
In a significant development for the global Islamic finance market, Nasdaq Dubai has welcomed three Sukuk issuances from the Republic of Indonesia, totaling USD 2.75 billion. This move not only underscores Indonesia's commitment to leveraging Dubai's robust financial infrastructure but also reaffirms Dubai's status as a global leader in Sukuk listings, with the total reaching an impressive USD 98.9 billion.
The Republic of Indonesia's latest Sukuk listings are part of its USD 45 billion Trust Certificate Issuance Programme. This marks the fourth successful entry into the USD debt capital market by Indonesia in 2024, making it the only Asian sovereign to achieve this feat consistently. The newly listed Sukuk tranches include USD 1.1 billion 5.00% Trust Certificates due in 2030, USD 900 million 5.25% Trust Certificates due in 2034, and USD 750 million 5.65% Trust Certificates due in 2054.
These listings not only elevate Indonesia's status as one of the largest Sukuk issuers on Nasdaq Dubai, with a total of USD 24.6 billion across 21 listings, but also highlight the strong investor confidence in the Republic's economic fundamentals. The occasion was marked by a ceremonial market opening bell rung by H.E. Husin Bagis, Ambassador of the Republic of Indonesia to the UAE, alongside key financial figures from both nations.
For Dubai Financial Market PJSC (DFM), this development is a testament to its strategic positioning and robust infrastructure, which continue to attract significant international financial activities. The involvement of the Government of Dubai, through Borse Dubai Limited, as the controlling entity, further strengthens DFM's credibility and operational capacity.
From an investment perspective, the consistent growth in Sukuk listings on Nasdaq Dubai, coupled with the strong economic fundamentals of the issuers like Indonesia, suggests a positive outlook for stakeholders. However, given the current global financial climate and market volatility, it may be prudent for investors to adopt a 'hold' strategy. This approach allows investors to benefit from potential future gains as the market stabilizes and grows.
Source
Summary
Nasdaq Dubai has announced the listing of three Sukuk issuances by the Republic of Indonesia, totaling USD 2.75 billion. This development enhances Indonesia's prominence as a major Sukuk issuer on the exchange, with its total listed Sukuk reaching USD 24.6 billion. The listings are part of Indonesia's USD 45 billion Trust Certificate Issuance Programme, marking the fourth time in 2024 that Indonesia has accessed the USD debt capital market. The new Sukuk tranches include USD 1.1 billion due in 2030, USD 900 million due in 2034, and USD 750 million due in 2054. These listings contribute to Dubai's status as the global leader for Sukuk listings, with a total of USD 98.9 billion. The occasion was marked by a market opening ceremony attended by Indonesian and Nasdaq Dubai officials. The Indonesian Ambassador to the UAE highlighted the significance of these issuances, noting strong investor interest and confidence in Indonesia's economic fundamentals.
