Indonesia Lists $2.2 Billion Sukuk On Nasdaq Dubai Exchange

Post by : Mumtaaz Qadiri

Nasdaq Dubai has welcomed two new Sukuk listings from the Republic of Indonesia. These Sukuk, which are financial instruments similar to Islamic bonds, were listed under Indonesia’s $45 billion Trust Certificate Issuance Programme. The total value of these new listings is $2.2 billion. This move highlights Indonesia’s strong presence in the international Sukuk market and its role as the largest sovereign Sukuk issuer on Nasdaq Dubai.

Details Of The New Issuance

The latest Sukuk issuance by Indonesia is divided into two parts, often called tranches. The first tranche is worth $1.1 billion with a 4.55% profit rate and is due to mature in 2030. The second tranche is also worth $1.1 billion, but this one is a green Sukuk, carrying a 5.20% profit rate and maturing in 2035. A green Sukuk means the money raised will be used to finance environmentally friendly and sustainable projects.

Commitment To Sustainable Financing

By issuing a green Sukuk, Indonesia has shown its growing commitment to sustainability and climate-friendly development. This is not only about raising funds but also about ensuring that these funds go into projects that protect the environment. Green Sukuk has become an important tool in global finance, as it allows countries to raise money while promoting sustainability. Indonesia is leading the way in this area among sovereign issuers.

Indonesia’s Track Record On Nasdaq Dubai

With this latest listing, Indonesia now has $24.05 billion worth of Sukuk listed on Nasdaq Dubai. These are spread across 21 different issuances, making Indonesia the largest sovereign Sukuk issuer on the exchange. This is a strong sign of Indonesia’s consistent efforts in tapping into international capital markets and building investor confidence.

Nasdaq Dubai’s Expanding Sukuk Market

Nasdaq Dubai itself has become a global hub for Sukuk listings. With the addition of Indonesia’s two new Sukuk, the total value of Sukuk listed on Nasdaq Dubai has reached $98.6 billion. These Sukuk come from more than 100 issuers, including sovereign states, international organizations, and private companies from across the world. This shows the growing importance of Dubai as a center for Islamic finance.

Market-Opening Ceremony

To mark the occasion, Husin Bagis, Ambassador of the Republic of Indonesia to the UAE, rang the market-opening bell at Nasdaq Dubai. He was joined by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). This ceremony symbolized the celebration of Indonesia’s continued partnership with Dubai’s financial markets and its trust in Nasdaq Dubai’s global platform.

Statements From Indonesian Ambassador

Speaking at the event, Ambassador Husin Bagis highlighted that the Sukuk issuance is a clear sign of Indonesia’s strong economy and its growing role in the world’s financial markets. He also stressed that the green Sukuk demonstrates Indonesia’s focus on sustainable development. According to him, economic growth must go hand in hand with protecting the environment for future generations, and this Sukuk reflects that responsibility.

Statement From Nasdaq Dubai CEO

Hamed Ali, CEO of Nasdaq Dubai and DFM, welcomed Indonesia’s Sukuk issuance warmly. He said that these listings show the strength of Nasdaq Dubai’s platform as a hub for sovereign Sukuk and ESG-linked (Environmental, Social, and Governance) products. He also pointed out that the exchange provides global investors with transparent and efficient access to these financial instruments, making Dubai an attractive destination for issuers worldwide.

The Bigger Picture Of Debt Listings

Beyond just Sukuk, Nasdaq Dubai is also a major platform for various debt listings, including bonds and trust certificates. After this new listing, the total value of all outstanding debt instruments on Nasdaq Dubai has exceeded $139 billion. This includes issuers from governments, corporations, and financial institutions around the globe, showing the exchange’s strong global reach and growing reputation.

Importance Of Sukuk In Global Finance

Sukuk are different from traditional bonds because they comply with Islamic finance principles. Instead of paying interest, Sukuk holders earn profits from specific assets or projects. This makes Sukuk very popular in countries with large Muslim populations and also among investors who want ethical and asset-backed financial products. By issuing Sukuk, Indonesia is able to attract a wide range of investors while also ensuring compliance with Islamic finance rules.

Indonesia’s Global Role In Sukuk Market

Indonesia has become one of the biggest names in the global Sukuk market. By consistently issuing Sukuk, the country shows investors that it has stable financial policies and long-term growth strategies. The addition of green Sukuk further enhances its reputation as a responsible player in international finance. Other countries may follow Indonesia’s example by combining financial needs with environmental goals.

Dubai As A Global Sukuk Hub

Dubai has worked hard to position itself as a global hub for Sukuk and Islamic finance. Nasdaq Dubai provides a platform where issuers from different countries can list their Sukuk and reach international investors. With more than 100 Sukuk listed, Dubai has become a leading destination for Islamic finance products. The partnership between Dubai and Indonesia reflects this growing importance.

Long-Term Benefits Of The Listings

These new Sukuk listings will benefit both Indonesia and Nasdaq Dubai. For Indonesia, it means access to more investors and the ability to raise funds for development and green projects. For Nasdaq Dubai, it means an even stronger position as a trusted platform for sovereign and corporate issuers worldwide. For investors, it offers opportunities to invest in stable and sustainable projects.

The listing of $2.2 billion Sukuk by Indonesia on Nasdaq Dubai is more than just a financial event. It is a sign of Indonesia’s growing global influence, its strong economy, and its commitment to sustainability. At the same time, it highlights Dubai’s role as a global leader in Sukuk and Islamic finance. With $24.05 billion in Sukuk listed by Indonesia alone and a total Sukuk market of $98.6 billion, Nasdaq Dubai continues to play a key role in shaping the future of Islamic finance worldwide.

Indonesia Sukuk listing, Green finance commitment, Nasdaq Dubai growth