Dubai and Nasdaq declare Islamic finance ambitions

The Dubai Islamic Economy Development Centre (DIEDC) is collaborating with Nasdaq Dubai on a scheme to cement Dubai’s status as a domicile for sukuk issuance.

The DIEDC was established in 2013 as part of Dubai’s “capital of Islamic economy” initiative. In April 2017, Dubai’s sukuk issuance reached $53.1 billion, the highest in the world.

The plans were announced at a session attended by Dubai dignitaries including the crown prince and chairman of the Dubai Executive Council, Sheikh Mohammad Bin Rashid Al Maktoum.

The proposals include introducing more retail instruments for individuals to invest in the sukuk market and a pledge for Nasdaq Dubai and the DIEDC to provide more technical support for the issuing and listing of sukuk.

The UAE’s minister of economy and chairman of the DIEDC, Sultan bin Saeed Al Maktoum, said sukuk have become a preferred instrument for financing international development projects because of the “respect for the ethics of economic activity” and a basis on “the principle of contribution rather than debt pressure”.

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