Abu Dhabi Islamic Bank (ADIB), a prominent Islamic financial institution, has been designated as a primary dealer for the UAE’s Federal Treasury Sukuk Programme. Launched by the federal government through the Ministry of Finance (MOF), the program aims to issue Sukuk using Shariah-compliant structures approved by the Higher Shari’ah Authority.
Previously, the Federal Government introduced a conventional bond issuance program in the UAE. Now, with the inclusion of Sharia-compliant Treasury Sukuk, the program expands investment options for those interested in Sharia-compliant financial products. The conventional T-bonds program, initiated in April last year, involved six local and international banks and aimed to create a yield curve for the Emirati Dirham while offering investors low-risk, local currency investment opportunities for medium and long-term periods.
Abdul Qadir Khanani, Group Treasurer at ADIB, expressed pride in the bank’s appointment as a primary dealer for the program. He emphasized that this development reinforces ADIB’s position as a leading Sharia-compliant bank and supports its growth plans. The bank’s involvement will enable it to offer allocated Sukuk to its customers and other qualified investors in the secondary market.
This appointment highlights ADIB’s dedication to promoting Islamic finance growth in the UAE and the broader region. The bank’s expertise will allow it to provide innovative financial solutions to investors, helping them access the potential of Islamic finance. The program is expected to attract local and international investors, bolstering the UAE’s financial market and solidifying its status as a premier financial hub in the region.
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ADIB As Primary Dealer for UAE’s Federal Treasury Sukuk Program
ADIB as the primary dealer for UAE’s Federal Treasury Sukuk Programme is a milestone in Islamic finance development. Sharia-compliant Treasury Sukuk alongside conventional T-bonds caters to a wide range of investor preferences.
The Sukuk market has experienced significant growth in recent years, with an increasing number of investors seeking Sharia-compliant investment opportunities. Various factors, including the growing Muslim population worldwide, the rising affluence of Muslim-majority countries, and the increasing interest in socially responsible and ethical investments among both Muslim and non-Muslim investors, have attributed to this growth.
As a primary dealer, ADIB will play a crucial role in the distribution and trading of Sukuk issued under the Federal Treasury Sukuk Programme. This responsibility will help strengthen the bank’s position in the Islamic finance sector, as it will be able to offer a wider range of investment options to its customers and other qualified investors in the secondary market.
Furthermore, experts expect the Federal Treasury Sukuk Programme to contribute to the development of the UAE’s Islamic finance ecosystem. By offering Sharia-compliant investment options, the program will encourage further innovation in Islamic finance products and services, promote financial inclusion, and stimulate economic growth in the UAE and the broader region.
Related: UAE to issue Dh1.1 billion treasury sukuk
Treasury Sukuk Program to Enhance UAE’s Financial Center Status
The program will boost the UAE’s status as an international financial center and global investors seeking Sharia-compliant investment opportunities. This will likely lead to new business opportunities among financial institutions, regulators, and other stakeholders in the Islamic finance industry.
The appointment of ADIB as a Federal Treasury Sukuk Programme dealer highlights the growing significance of Islamic finance. This promotes the Islamic finance sector, draws in investments, and fortifies its position as a financial hub.
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