UAE enhancing its status as top economic powerhouse in Mena

Charlie Walker, Deputy CEO of the London Stock Exchange (LSE), stated that the UAE is enhancing its status as a leading economic powerhouse in the Middle East and North Africa (Mena) region through its significant role in the bond issuance market with the London Stock Exchange Group (LSEG).

“The UAE continues to drive economic growth in the region through its innovative solutions and strategic partnerships, leveraging its advanced infrastructure and thriving capital markets,” Walker said in a statement to the Emirates News Agency (WAM) during his visit to Abu Dhabi. He emphasised that the UAE is reinforcing its position as a regional and global economic powerhouse, contributing significantly to global economic transformation.

He added that the UAE accounts for about 39 percent of the total bond issuances in the region, reflecting its ability to attract the capital needed to finance important strategic projects. He added that the UAE has completed 37 bond issues worth a total of US$18.51 billion since the beginning of this year, leading the issuance of debt instruments in the Middle East and Africa.

Walker pointed out that this success was not a coincidence, but the result of strong government policies and strategic cooperation with global entities such as the LSEG, which provides an ideal platform for UAE companies and government entities to access global capital markets.

“The partnership between the LSEG and Abu Dhabi Securities Exchange (ADX) is a strategic move to strengthen the financial infrastructure in the UAE and the wider region,” he said, adding that the FTSE ADX index series provides investors with a reliable benchmark to track the performance of Abu Dhabi’s key sectors, allowing them to make well-informed investment decisions.

The launch of the FTSE ADX ESG Index reflects the UAE’s commitment to promoting responsible investment practices, as it provides tools for investors to align their portfolios with global environmental and social governance objectives.

“Through this partnership, LSEG and ADX are building a strong and competitive financial market that will support the UAE’s economic growth and achieve its aspirations to become a global centre for sustainable investment,” he said.

He highlighted that the LSE has emerged as a key platform for Emirati companies financing ambitious projects in renewable energy, infrastructure, and technology. In 2023, Masdar raised $1 billion through green bonds, reflecting the UAE’s commitment to renewable energy and sustainability goals.

He emphasised that the LSE has become a key partner in developing the UAE’s capital market, as demand for sustainable financial instruments like Sukuk and green bonds increases. “The region has seen remarkable growth in financial issuances, with Sukuk issuances in the Middle East reaching approximately $80 billion.”

Nasdaq Dubai welcomes listing of $500 million AT1 Sukuk by DIB:  Nasdaq Dubai welcomed the listing of US$500 million Sukuk issued by Dubai Islamic Bank (DIB).

The additional Tier 1 (AT1) Sukuk was issued at a profit rate of 5.25 percent per annum and received strong investor demand, resulting in substantial oversubscription.

This strategic issuance reinforces DIB’s leadership in the global Islamic finance sector, providing additional capital to support its growth strategy.

With this listing, Nasdaq Dubai further cements its position as a leading global hub for Sukuk, with a total outstanding Sukuk now reaching US$93 billion across 102 listings and a combined US$133 billion in capital market listings.

The issuance attracted diverse investors, including financial institutions, private banks, and fund managers from Europe, Asia, and the Middle East, underscoring the growing appeal of Islamic financial instruments and highlighting investor confidence in the UAE’s robust financial market. The Sukuk is dual listed on Nasdaq Dubai and Euronext Dublin.

To commemorate the listing, Saeed Wajdi, Chief of Treasury at DIB, rang the bell at the market-opening ceremony at Nasdaq Dubai alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market.

Dr Adnan Chilwan, Group Chief Executive Officer of DIB, stated, “The successful reception of our $500 million Sukuk listing on Nasdaq Dubai transcends beyond reaffirming market confidence in Dubai Islamic Bank. It signifies a robust endorsement of the UAE’s economic resilience and future ambitions.

In line with the leadership’s transformative vision, we are driving initiatives that strengthen the national economy and position us as a global leader in Islamic finance. This listing amplifies our profile, connecting us with a broader spectrum of investors and utilizing Nasdaq Dubai’s well-regulated platform to expand our global reach and elevate our investor relations.”

WAM