There have been heavy activities at Nasdaq Dubai, with the international stock exchange, located in the Dubai International Financial Centre (DIFC), recently welcoming the listing of a USD 500 million sukuk issued by The Arab Energy Fund (TAEF), a leading multilateral impact financial institution focused on the energy sector.
It was followed immediately by the UAE Ministry of Finance, which got its inaugural “Sovereign Retail T-Sukuk Programme” successfully launched and listed at the exchange.
The Arab Energy Fund, which shares longstanding engagement with Nasdaq Dubai by contributing heavily to the latter’s Sukuk market, got its Sharia-compliant financial certificate issued under TAEF’s Trust Certificate Issuance Programme through APICORP Sukuk Limited. The Sukuk comprises USD 500 million in trust certificates due in 2031.
The senior unsecured issuance carries a profit rate of 4.686% and was priced at a spread of 70 basis points over SOFR.
Arab Energy Fund’s issuance attracted orders exceeding USD 900 million and was 2x oversubscribed, enabling pricing to tighten from initial guidance. The transaction saw strong and well-diversified demand across geographies and investor types, with high-profile institutions such as central banks, sovereigns, supranational institutions, and agencies (SSAs) taking part in the process, underscoring the strength of TAEF’s credit profile and market positioning.
Stating that “Trust Certificates” are rated Aa2 by Moody’s and AA+ by Fitch, reflecting Arab Energy Fund’s strong credit profile, Vicky Bhatia, the entity’s chief financial officer (CFO), said, “This transaction shows both the strength of our credit profile and our ability to work through difficult market conditions.” Achieving pricing at SOFR+70bps with no new issue premium, despite the challenging market, demonstrates the confidence investors have in the Arab Energy Fund and its mission.”
Hamed Ali, CEO of Nasdaq Dubai and DFM, said, “The Arab Energy Fund’s latest Sukuk listing adds to the depth of Nasdaq Dubai’s Sukuk market and reflects continued activity from supranational issuers in regional debt capital markets. As the Fund’s fourth listing on the exchange, the transaction highlights the role of established issuers in supporting market development and broadening investment opportunities for regional and international investors.”
The latest issuance follows the Arab Energy Fund’s USD 500 million 10-year Sukuk listing earlier this year and forms part of its diversified funding strategy to support sustainable energy development across the Gulf region.
Shifting the focus to the UAE Ministry of Finance’s listing of its inaugural sovereign retail T-Sukuk programme, the event marked the culmination of the Gulf country’s comprehensive strategic effort to broaden its Islamic financial ecosystem, apart from providing innovative sovereign investment instruments that foster a culture of saving and long-term investment across the nation.
“The UAE continues to advance a resilient and inclusive economic model built on a sophisticated financial and legislative infrastructure that aligns with the highest international standards. The listing of the country’s inaugural Sovereign Retail T-Sukuk Program reflects the ministry’s strategic vision to strengthen the efficiency of domestic capital markets and diversify sovereign funding sources, ensuring sustainable financial resources while providing highly secure investment solutions that reinforce the UAE’s long-term financial stability,” said Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs.
The inaugural retail T-Sukuk offering recorded exceptional investor demand, as it exceeded official expectations, with subscription requests reaching AED445 million, achieving an oversubscription of nearly nine times the target issuance size of AED50 million. Responding to the strong investor demand, the ministry has increased the issuance size to AED100 million.
The programme also attracted a broad and diverse base of retail investors, as the latter subscribed up to AED10,000, thereby accounting for 76% of the total subscriber base. At 72%, UAE nationals accounted for the largest share of subscribers.
By generating strong participation from young investors under the age of 25 and women, who together accounted for 45% of the total subscriber base, the “Retail T-Sukuk Program” has become successful in terms of advancing financial inclusion.
“The exceptional investor demand for the inaugural offering, which exceeded expectations and achieved record levels of oversubscription, reflects the growing financial and investment awareness among members of society. It also demonstrates the programme’s success in broadening participation in government investment instruments and advancing financial inclusion by providing secure and trusted investment opportunities for all segments of society,” Al Hussaini added.
“This issuance represents an important strategic instrument for deepening the integration between fiscal policy and the country’s key economic sectors by mobilising national capital and directing it towards initiatives that support comprehensive and sustainable development. The Ministry of Finance remains committed to fostering an enabling environment for financial innovation through close collaboration with the Central Bank of the UAE and the country’s financial markets, further strengthening the UAE’s global competitiveness as a leading and sustainable financial centre offering trusted saving and investment opportunities that meet the aspirations of all segments of society,” he concluded.
The inaugural listed issuance carries significant strategic value, with an initially announced issuance size of AED50 million, which was upsized to AED100 million to capitalise on strong investor demand and broad market participation, and a minimum investment threshold of AED1,000, making sovereign investment opportunities more accessible and enabling broader participation by individual investors.
The “Sovereign Retail T-Sukuk Program” has a two-year tenor, offering a profit rate of 4.30% per annum, with returns distributed every six months. The sukuk, now available for trading on the secondary market through authorised exchange brokers, is also supported by dedicated market makers and liquidity providers to ensure efficient price discovery, enhance market liquidity and facilitate seamless trading.
The filings have further strengthened Nasdaq Dubai’s role as one of the world’s leading international venues for Sukuk and fixed-income listings. The exchange currently hosts over USD 98.6 billion in outstanding Sukuk listings and over USD 141 billion in outstanding debt securities, supporting issuers from across the region and international markets while reinforcing Dubai’s position as a global centre for Islamic finance.