Dubai issues $2bn Sukuk, bonds with lowest in history

The Department of Finance (DOF) Dubai announced the successful completion of an issuance process consisting of 10-year Islamic Sukuk of one billion US dollars at a profit rate of 2.763% and thirty-year government bonds of one billion US dollars at an interest of 3.90%.

Abdulrahman Saleh Al Saleh, Director General of DOF said, "We are satisfied with the success of Dubai in this issuance. DOF was able to obtain the lowest interest rate for thirty-year bonds and the lowest profit for ten-year Sukuk in Dubai government history."

"This issuance was in line with the determinants of the financial policy pursued by the emirate, which was based on financial sustainability and continued spending on vital infrastructure projects, while responding to the requirements of the current stage set in the budget priorities circular, issued at the beginning of the second quarter of this year”, he said.

The issue was 5x oversubscribed, with the order book value exceeding $10 billion.

“This is a strong indicator of the efficiency of government financial solvency and the continued high investor confidence in the financial landscape of the Dubai government at the global level," Al Saleh added.