Dubai entities answer ruler’s Islamic banking call (By IFN)

Dubai entities answer ruler’s Islamic banking call

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UAE: Dubai, in comparison with the rest of the GCC - in particular Qatar and to a certain extent Oman - has been somewhat quiet on the Islamic finance front but it appears that Dubai-based entities are answering enthusiastically to the call from ruler Sheikh Mohammed Rashid Al Maktoum to make Dubai the GCC’s premier financial hub. The latest to answer the call is Dubai Investments, with its plans to issue an AED1 billion (US$272.18 million) Sukuk this year, according to Khalid Jassem Kalban, its managing director and CEO. The conglomerate did entertain the idea of issuing a US$200 million Sukuk in March last year, with Khalid noting that a Sukuk issuance represents an attractive option over other available lines of credit. Following that train of thought, proceeds from this upcoming Sukuk will be used towards the company’s debt repayments, to finance expansion plans and possible acquisitions. There have been many such activities brewing in Dubai, particularly on the real estate development front; the most recent being the AED6 billion (US$1.63 billion) Bluewaters Island project by government-owned Meraas Holdings. This week alone, NASDAQ Dubai appointed an advisory group in preparation for Dubai’s proposed market plan to attract more foreign issuers to list IPOs on the bourse, and the DIFC is confident that it will double the numbers of companies operating within the zone by 2017, given Dubai’s position as the Gulf’s center of trade and investments. Although activity seems to be picking up in Dubai, it still remains to be seen if the emirate will be able to maintain a bullish stance particularly in the development sector, and continue on its growth trajectory.