The total value of debt securities listed on Nasdaq Dubai has crossed $136.2 billion, following the recent issuance of a $1 billion sukuk by the Government of Ras Al Khaimah. This latest listing brings the total value of sukuk on the exchange to over $92.7 billion, solidifying Nasdaq Dubai’s status as a leading global hub for Islamic finance.

The new sukuk, which is a 10-year senior unsecured issue at a profit rate of 5.038 percent, was issued on March 5, 2025, through the Investment and Development Office of Ras Al Khaimah. Overall, the debt securities listed on Nasdaq Dubai now comprise 157 issuances, showcasing a robust market presence.

Fitch Ratings has projected a positive outlook for the UAE’s debt capital market, estimating it could grow to $400 billion in the coming years. This growth is expected to be driven by factors such as funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the implementation of the Dirham Monetary Framework, according to the agency.

The new sukuk, due in 2035, is part of RAK Capital’s $2 billion trust certificate issuance program, which is associated with the Government of Ras Al Khaimah. The issuance aims to support the emirate’s economic growth and infrastructure development initiatives. The sukuk attracted substantial investor interest, with an order book exceeding $4.4 billion, reflecting confidence in Ras Al Khaimah’s economic stability and future growth prospects.

Mohammed Sultan Al Qadi, the managing director at the IDO, celebrated the listing by ringing the market-opening bell at Nasdaq Dubai. He emphasized that this sukuk issuance demonstrates Ras Al Khaimah’s sound financial management and commitment to sustainable economic growth. He also noted that the strong investor response indicates the strength of the emirate’s economic fundamentals.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, remarked that the high demand from investors reflects the sustained interest in quality sovereign debt. He pointed out that government issuances account for 62 percent of Nasdaq Dubai’s listings, reinforcing its position as a premier exchange for public fundraising and providing issuers access to global capital markets.

This recent listing follows RAK Capital’s previous sukuk issuances, including a $500 million sukuk that matured in October 2018 and the currently listed $1 billion sukuk issued in 2015, which is set to mature by the end of March 2025.

Fitch also highlighted that a favorable funding environment, characterized by anticipated lower US Federal Reserve interest rates in 2025 and declining oil prices, could further boost the diverse debt capital market. Bashar Al Natoor, Global Head of Islamic Finance at Fitch, noted that Nasdaq Dubai remains a key venue for sukuk listings, with the UAE’s debt capital market on track to reach $400 billion, driven by strategic diversification and reforms.

The UAE has established itself as a significant player in the global sukuk market, with 92 percent of its sukuk rated investment-grade and nearly all issuers maintaining stable outlooks. Notably, there were no defaults in 2024, which underscores the market’s stability, supported by the evolving Dirham Monetary Framework and conducive funding conditions. In 2024, the UAE ranked as the third-largest dollar debt issuer in emerging markets, excluding China, and was the second-largest debt capital market among GCC countries.