In the third quarter of 2024, issuers from the UAE raised an impressive 117 billion through bond and sukuk offerings, demonstrating strong investor confidence and a growing demand for fixed-income securities despite global economic challenges.
This quarter saw increased activity as both sovereign and corporate issuers leveraged favorable market conditions. The UAE government issued 4 billion in bonds, while state-owned and private corporations also made significant sukuk contributions. This trend reinforces the UAE’s prominence as a key hub for Islamic finance, drawing investment from a wide range of global investors.
The proactive approach of the Emirates in capital markets has enabled issuers to benefit from a low-interest-rate environment and increased interest in sustainable investments, particularly in the developing sukuk market that adheres to Sharia-compliant principles. The issuance of green sukuk aligns with the UAE’s commitment to environmental sustainability.
Notable players in this capital-raising wave included the Dubai Electricity and Water Authority, which issued a 1.5 billion sukuk for infrastructure financing, and institutions like Abu Dhabi Commercial Bank and Emirates NBD actively participating in the bond market.
The strong demand for UAE bonds and sukuk, with oversubscriptions noted, reflects the appeal of competitive yields. Foreign investor participation has been significant, supporting the UAE’s strategic goal of enhancing its global financial presence.
Looking ahead, experts expect continued growth in the bond and sukuk market driven by fiscal initiatives and an expanding investor base, particularly in sectors focused on sustainability and innovation.
