Sharjah Govt Issues $1b Sukuk

Sharjah: The Government of Sharjah has issued a $1 billion (Dh3.67 billion) dollar sukuk on a 10 year maturity.

The lead arrangers for the issue were Sharjah Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered.

Walid Al Sayegh, Director-General of Sharjah Finance Department, said: “We were confident that Sharjah’s sukuk issuance would be successful due to the emirate’s economic and financial status on a regional and global level. In the business and financial world, the emirate’s balance of investment is great. The emirate has diverse and massive financial resources, which allows it to occupy a prestigious position considering that it is a trusted investment environment.”

Al Sayegh pointed out that the timing behind the issuance makes this the first sovereign sukuk issued in 2018 in the region, and that the scope and volume of demand indicates the strength of the financial system of the emirate, its diverse sources of income and its advanced infrastructure.

He further revealed that this is the largest sukuk issuance by the government of Sharjah, which previously carried out two issuances. He said that this reaffirms the emirate’s aim to fulfil its financial commitments, and reflects the confidence of global institutions in the financial system of Sharjah. Al Sayegh said that the revenue from these sukuk will be used for infrastructure projects, as well as urban and financial development of Sharjah.