Nasdaq Dubai, one of the world's leading financial trading platforms, has achieved remarkable success in the Islamic finance sector in recent years. By continuously attracting large-scale bond issuances from financial institutions, Nasdaq Dubai has not only solidified its position as a financial hub in the Middle East but also further promoted the internationalization and diversification of the Islamic finance market. This article will focus on two recent significant bond issuance activities on Nasdaq Dubai, exploring their impact and significance on the Islamic finance market.

Sharjah Islamic Bank's $500 Million AT1 Bond Issuance

Background and Significance

In 2024, Sharjah Islamic Bank (SIB) successfully issued $500 million in Additional Tier 1 (AT1) bonds on Nasdaq Dubai. The perpetual, non-call six-year AT1 Capital Certificates were issued by SIB Tier 1 Sukuk IIND Ltd and are compliant with Basel III regulations. The issuance attracted strong interest from both regional and international investors, providing SIB with additional capital to support its long-term growth plans.

This bond issuance marked a significant milestone in SIB's strategic growth journey. It not only reflected the bank's strong fundamentals and robust investor confidence but also demonstrated its commitment to maintaining a solid capital base in line with Basel III requirements. By listing on Nasdaq Dubai, SIB further deepened its relationship with the platform, leveraging its leadership in Islamic finance innovation and global best practices to expand its international presence.

Market Impact

This latest transaction brought SIB's total outstanding bonds on Nasdaq Dubai to $2.5 billion across five listings. It also reinforced Dubai's strategic role in advancing the Islamic capital markets ecosystem. Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), noted that this listing was more than just capital raising; it represented a broader shift as regional institutions like SIB lead the deepening of local debt markets. As demand for diversified, Shariah-compliant instruments continues to grow, Nasdaq Dubai serves as a trusted platform for innovation in Islamic finance.

Mashreq's $500 Million Bond Issuance

Background and Significance

In 2025, Mashreq Bank successfully listed $500 million in bonds on Nasdaq Dubai. The bonds, due in 2030, were issued by Mashreq Al Islami Sukuk Company Ltd under Mashreq's $2.5 billion Trust Certificate Issuance Programme. The listing followed strong demand in the primary market and marked an important milestone for Mashreq as it expanded its access to international capital markets and strengthened its presence in the Islamic finance space.

This issuance was a clear demonstration of Mashreq's long-term commitment to Islamic finance and the deepening of cross-border capital flows. It also highlighted the UAE's continued emergence as a global nexus for ethical and Shariah-compliant financing. By listing on Nasdaq Dubai, Mashreq reaffirmed investor trust and contributed to the maturation of Islamic capital markets.

Market Impact

This landmark issuance marked Mashreq's successful return to the international debt capital markets. It was the first public issuance from the CEEMEA region since the announcement of U.S. tariffs in April 2025, which had triggered heightened volatility across global markets. The success of this transaction renewed market participants' confidence and was followed by a string of issuances, thereby helping to reopen the market for regional issuers.

The transaction attracted significant investor interest, resulting in an order book of $2.9 billion, nearly six times oversubscribed. The final pricing was tightened to UST +105 basis points with a fixed profit rate of 5.03% per annum, reflecting the strength and quality of the order book and strong investor confidence in Mashreq's credit fundamentals. With broad participation from over 90 global investors across the Middle East, Europe, and Asia, the issuance reaffirmed Mashreq's leadership in Islamic finance and reinforced Dubai's growing stature as a global hub for Shariah-compliant capital markets.

Nasdaq Dubai's Position in Islamic Finance

With the successful listings of bonds by SIB and Mashreq, the total value of Sukuk listed on Nasdaq Dubai reached $95.7 billion and then $97.2 billion, further solidifying its position as one of the world's largest centers for Islamic fixed-income securities. The broader debt capital market on Nasdaq Dubai now stands at over $140 billion across 163 issuances. These figures reflect the depth and maturity of the UAE's capital markets and highlight Dubai's appeal as a gateway for regional and international investment.

Conclusion

By supporting the bond issuances of institutions like SIB and Mashreq, Nasdaq Dubai has not only provided capital support to these institutions but also further promoted the internationalization and diversification of the Islamic finance market. As demand for Shariah-compliant financial instruments continues to grow, Nasdaq Dubai will continue to play a leading role in financial innovation and market transparency, providing a credible platform for global investors. Looking ahead, with the participation of more financial institutions, Nasdaq Dubai is expected to further consolidate its core position in the global Islamic finance market and drive its continued prosperity.