UAE market in overdrive as economy improves
Dubai Islamic Bank issues first-ever sustainable sukuk
The UAE business fraternity puts the pedal to the metal this week with a slew of announcements reflecting its capital adequacy and financial stability in the public and private sectors.
Dubai Islamic Bank, rated A3 by Moody’s and A by Fitch, on Wednesday priced its inaugural sustainable sukuk, a $750 million five-year senior issue with a profit rate of 5.49 percent per annum, representing a spread of 155 basis points over five-year US Treasuries. According to a press note, it is the first-ever sustainable sukuk from a UAE financial institution and the largest from a bank based in the Gulf Cooperative Council region since February 2022.
The sukuk, listed on Euronext Dublin and NASDAQ Dubai, was created to finance green and social initiatives and projects.
“We are delighted to have issued our inaugural sustainable sukuk today. This deal was very important for DIB given our strong commitment to sustainable finance and the UAE’s net-zero agenda and
the Dubai Clean Energy Strategy,” said Adnan Chilwan, group CEO of DIB, in a statement.
On Tuesday, ADIB Securities, a Shariah-compliant brokerage firm and a wholly owned subsidiary of Abu Dhabi Islamic Bank, reported over 22 billion dirhams ($5.99 billion) worth of trades for the nine-month period ended Sept.30. The brokerage reported a 149 percent increase in the utilization of its digital trading platform compared to the same period last year. The growth was primarily driven by a strong increase in the number of transactions routed through the company’s digital channels, from 68 percent to 73 percent over the same period.
“Q3 was a very busy time for us here at ADIB Securities. We have grown the number of new accounts opened by 87 percent, and our number of transactions has risen by 83 percent,” said Khaled Kurdieh, general manager at ADIB Securities, in a statement.
He said new IPOs and global market volatility have provided investors with opportunities to trade more frequently while maintaining focus on the long term.
Etihad Credit Insurance, the UAE Federal export credit company, received “AA-” or a very strong rating for the fourth consecutive year by Fitch Ratings, reflecting the company’s role in supporting the diversification of the UAE economy.
The primary driver for these robust ratings is ECI’s strategic governmental function in promoting UAE’s non-oil exports and strategic sectors’ development to achieve the country’s economic agenda. “This positive rating reflects the confidence of the international organizations and global rating agencies in the UAE in general, and it also confirms the creditworthiness of the company,” said Abdullah bin Touq Al Marri, minister of economy and chairman of ECI board of directors.
As part of the UAE’s vision to adopt global best practices for accounting and finance, the Ministry of Economy on Wednesday introduced the UAE Fellowship Program to reform the auditing profession in the UAE.