Ras Al Khaimah Government Attracts Billions to NASDAQ Dubai Initiative

Ras Al Khaimah Government Lists $1 Billion Sukuk on Nasdaq Dubai

The Ras Al Khaimah government has solidified its position in the global financial
landscape by listing $1 billion in Sukuk on the Nasdaq Dubai Stock Exchange.
This strategic move, executed through the Investment adn Development office of
the Ras Al Khaimah Government, signals confidence in the emirate’s economic
future. The Sukuk, issued on March 5, 2025, have a 10-year maturity and a profit
rate of 5.038%.

Details of the Sukuk Issuance

• Issuer: Investment and Development Office of the ras Al Khaimah
  Government
• Amount: $1 billion
• Listing Venue: Nasdaq Dubai stock Exchange
• Issuance Date: March 5,2025
• Maturity: 10 years (due in 2035)
• Profit Rate: 5.038%

Strategic Importance and Economic Impact

This Sukuk issuance falls under the Ras Al Khaimah government’s $2 billion
confidence certificates program managed through “Rak Capital,” a special-purpose
vehicle. The revenue generated is earmarked to bolster economic growth plans and
develop crucial infrastructure projects within the emirate. The listing on Nasdaq
Dubai provides enhanced visibility to global investors.

Statements from Key Figures

Muhammad Sultan Al-Qadi, from the Investment and Development office of the Ras Al
khaimah Government, emphasized the significance of the issuance: “The issuance
of these sukuk reflects the wise financial management of the Emirate of Ras Al
Khaimah and our commitment to economic growth in the long term, while the grate
demand by investors is an indication of the strength of our economic basics, and
also provides us with the inclusion in (Nasdak Dubai) A obvious and
organized platform to communicate with global investors.”

Hamid Ali, CEO of NASDAC dubai and Dubai Financial Market, added: “We are pleased
to welcome the inclusion of the new Ras Al Khaimah government instruments worth
a billion dollars on the Nasdaq Dubai stock Exchange, where this listing reflects
the great demand from investors and their increasing interest in the sovereign
debt tools.”

Implications for Investors and the Region

The triumphant listing of these Sukuk demonstrates Ras Al Khaimah’s commitment to
prudent financial management, signaling a stable and attractive investment
environment. The strong investor demand underscores confidence in the emirate’s
economic fundamentals and its growth prospects. This move aligns with the broader
trend of increased interest in sovereign debt instruments within the region. Investors seeking stable,long-term opportunities might find these Sukuk particularly appealing.

This listing not only benefits Ras Al Khaimah but also strengthens Nasdaq Dubai’s
position as a prominent exchange for Islamic financial instruments. As the emirate
continues to invest in infrastructure and diversify its economy, the Sukuk
issuance provides a crucial source of funding, setting a positive precedent for
future financial endeavors.

Call to Action

Stay informed about the latest developments in Ras Al Khaimah’s economic growth
and investment opportunities by following updates from the Nasdaq Dubai Stock
Exchange and the Investment and Development Office of the Ras Al Khaimah
Government. Explore potential investment options and contribute to the emirate’s
promising future.

What are the potential benefits of diversifying Ras Al khaimah’s investor base for future Sukuk issuances, according to Faisal Abbas?

Interview: Expert Insights on Ras Al Khaimah’s $1 Billion Sukuk Listing

We’re joined today by Faisal Abbas, a seasoned financial analyst specializing in Islamic finance, to discuss Ras Al Khaimah’s recent $1 billion Sukuk listing on nasdaq Dubai. Faisal, welcome to Archyde.

Thank you for having me.

Understanding the Sukuk Issuance

Faisal, can you briefly explain what a Sukuk is for our readers who might be unfamiliar?

Certainly. A Sukuk is essentially an Islamic bond. Unlike conventional bonds that pay interest, Sukuk represent ownership in an underlying asset. The profits are shared according to pre-agreed terms, adhering to Sharia principles.

So, this Ras Al Khaimah Sukuk – what’s unique about it?

This particular issuance is significant for several reasons. The size, $1 billion, demonstrates Ras Al Khaimah’s ability to attract substantial investment. The 10-year maturity and 5.038% profit rate offer investors a stable, long-term investment prospect. And, crucially, the listing on Nasdaq Dubai enhances its visibility and accessibility to a global investor base.

Strategic Importance and economic Impact of the sukuk

The article mentions this Sukuk is part of a larger $2 billion Trust Certificate issuance Program. How does this fit into Ras Al Khaimah’s broader economic strategy?

This is where it gets really engaging. The revenue from this Sukuk, managed through “Rak Capital,” is specifically earmarked for economic growth plans and infrastructure projects. That tells you Ras Al Khaimah is strategically using Islamic finance to fuel its growth and diversify its economy. It’s a prudent and forward-looking approach.

What kind of infrastructure projects are we talking about?

While specific projects haven’t been detailed, we can anticipate investments in areas like transportation, utilities, and tourism infrastructure – all crucial for sustained economic growth in a growing emirate. Diversifying the economy is key for long-term stability, and improved infrastructure allows for further economic opportunities.

Implications for Investors and the Region

The article highlights strong investor demand. What does this say about confidence in Ras Al Khaimah and the region?

Strong investor demand is a powerful indicator. It suggests investors perceive Ras Al Khaimah as a stable and attractive investment environment with strong economic fundamentals. This confidence ripples throughout the region, reinforcing the attractiveness of Islamic finance and sovereign debt instruments in the Middle East.

who are the types of investors most likely to be interested in this Sukuk?

Ideally, investors seeking stable, long-term investments. the 10-year maturity is a plus for that. Institutional investors, sovereign wealth funds, and even some high-net-worth individuals looking for Sharia-compliant investments are likely candidates.

A Thought-provoking Question

Faisal, considering the current global economic climate, what potential challenges or opportunities do you foresee for Ras Al Khaimah as it continues to leverage Sukuk for its development?

That’s a great question. While investor confidence is currently high, shifts in global interest rates and potential economic downturns could impact future Sukuk issuances. Though, the opportunity lies in further diversifying the investor base and showcasing the long-term stability and potential of Ras Al Khaimah’s economy. Transparent dialogue and robust economic management will be crucial.What do you think, Archyde readers? Leave your thoughts in the comments below!

Faisal Abbas, thank you for sharing your expertise with us today.

My pleasure.