Cash & Liquidity ManagementInvestment & FundingNasdaq Dubai’s New Platform for Trading Islamic Bonds

Nasdaq Dubai’s New Platform for Trading Islamic Bonds

Nasdaq Dubai is to open a new exchange trading platform on which investors can trade Sukuk (Islamic bonds) and conventional bonds.  

The tradable securities will initially comprise of just 12 Sukuk bonds listed on the exchange, with a nominal value of 10.9 billion dollars, with more expected to be added as the new Islamic trading platform is rolled out by Nasdaq Dubai this quarter. It is aimed at institutional, corporate and high-net worth investors.  

Settlement services for the new platform, operated out of the Dubai International Financial Centre (DIFC), will be handled by Euroclear Bank.  

The platform will open with links to leading United Arab Emirates (UAE) and international financial services institutions, assert the partners, although no launch clients are given and 12 bonds is a low rollout. Nonetheless, the fact that prices of Nasdaq Dubai-listed Sukuk and other bonds will be visible for the first time to all investors simultaneously on the same screen-based solution could attract volume. It should also increase transparency and efficiency in the secondary market, as well as promoting liquidity. Currently the Sukuk and other bonds are only tradable via banks over-the-counter (OTC) offerings so this initiative should open up the market somewhat.  

Commenting on the launch, Essa Kazim, chairman of Boerse Dubai, the holding company for Dubai’s stock exchanges and owner of as third of the shares in Nasdaq Dubai, said: “This new platform is a natural extension of Dubai’s existing role as a centre for Sukuk and bond issuance and listing.” He went on to add that he hopes: “Nasdaq Dubai will offer an efficient trading venue to participants from the region and around the world, providing fresh impetus to the growth of the capital markets in the UAE and the region.” 

Related Articles

Investors play down China trade war fears as domestic market soars

Investment & Funding Investors play down China trade war fears as domestic market soars

2m Simon Milne
Risky business?

Capital Markets Risky business?

2m Nina Brumma
How to trade bitcoin: an exploration of popular bitcoin exchanges

Investment & Funding How to trade bitcoin: an exploration of popular bitcoin exchanges

3m Michael McCaw
What is the function of corporate treasury?

Cash Management What is the function of corporate treasury?

3m Michael McCaw
"The architecture of financial markets has changed": Stefan Bielmeier, DZ Bank

Automation "The architecture of financial markets has changed": Stefan Bielmeier, DZ Bank

4m Victoria Beckett
China’s regulatory changes stimulate international interest

Asia Pacific China’s regulatory changes stimulate international interest

4m Michael McCaw
Why Ferguson Plc opts for floating rate debt: Bellin 1TC conference day 2

Capital Markets Why Ferguson Plc opts for floating rate debt: Bellin 1TC conference day 2

4m Victoria Beckett
Cold comfort for SMEs amidst Carillion bankruptcy

Economy Cold comfort for SMEs amidst Carillion bankruptcy

4m GTNews