Sharjah Islamic Bank’s $500 Million Sukuk Highlights the UAE’s Booming Islamic Finance Landscape
In a year defined by global financial uncertainty and tightening liquidity, Sharjah Islamic Bank (SIB) has once again demonstrated its strength and reliability in the Islamic finance sector. The bank successfully raised $500 million through a senior unsecured sukuk, underscoring both its market resilience and the UAE’s growing prominence in the global Shariah-compliant investment landscape.
The five-year sukuk, priced at a competitive yield of 4.65% — just 95 basis points above US Treasuries, attracted overwhelming investor interest. With an order book exceeding $1.35 billion, the issuance was oversubscribed by 2.6 times, drawing participation from investors across the Middle East, Europe, and Asia.
“This issuance is a testament to our ability to navigate volatile markets while maintaining disciplined liquidity management,” said H.E. Mohamed Abdalla, CEO of SIB. “It marks our tenth senior unsecured sukuk and our third capital markets transaction in 2025.”
A Growing Sukuk Market in the UAE
The deal arrives amid a notable surge in sukuk activity throughout the UAE. According to Fitch Ratings, the country’s total outstanding sukuk and bond issuances reached $309.4 billion by Q1 2025, an 8.3% year-on-year increase. Sukuk represented over 20% of this total, with $4.9 billion in new issuances during Q1 — double the volume recorded in the previous quarter.
This momentum reflects a broader strategic transformation within the UAE’s Islamic finance ecosystem. A new national strategy aims to double Islamic banking assets to Dh2.56 trillion and boost sukuk issuances to Dh660 billion by 2031. The UAE already ranks fourth globally in outstanding sukuk and is home to Nasdaq Dubai, the world’s largest sukuk exchange, listing nearly $99 billion in instruments.
Investor Confidence and Strategic Vision
SIB’s consistent presence in the global sukuk market is part of a long-term funding strategy that began in 2006. With this latest issuance, the bank now maintains three outstanding sukuk, maturing in 2029 and 2030.
Ahmed Saad, SIB’s Deputy CEO, emphasized that investor demand enabled the bank to tighten pricing by 30 basis points from initial guidance — a clear sign of trust in the institution’s fundamentals and its strategic execution.
Innovation and Sustainability in Islamic Finance
The UAE’s sukuk market is also witnessing rapid innovation, with the rise of tokenized sukuk and a projected $10–12 billion in green sukuk issuances by 2025. These developments align with the country’s broader goals of sustainability and digital transformation in finance.
As the UAE continues its journey toward becoming a global hub for Islamic finance, Sharjah Islamic Bank’s latest sukuk issuance stands as a symbol of resilience, innovation, and investor confidence — reinforcing the nation’s reputation for blending tradition with modern financial excellence.
