UAE: Dubai Issues AED 1 Billion Sukuk in Efforts to Secure Funding

Media reports state that the Government of Dubai has raised AED 1 billion from the private placement of a Sukuk, as Dubai’s finances have become strained due to the impacts of the COVID-19 pandemic. The Sukuk, which matures in eight years, carries a profit rate of 4.7125%, with Standard Chartered being the arranger.

According to a senior debt capital markets (DCM) banker, the Government will be able to repo the deal with the United Arab Emirates’ Central Bank, making it a good way for Dubai to fund itself.

Being the region’s most open economy, business hub and a tourist destination, Dubai is particularly vulnerable to the economic slowdown due to the on-going globa...