Nasdaq Dubai Lists $500M ICD Sukuk Amid High Demand

Nasdaq Dubai recently announced the successful listing of a $500 million Sukuk issued by ICDPS Sukuk Limited, guaranteed by the Islamic Corporation for the Development of the Private Sector (ICD). This listing not only adds to the growing portfolio of Sukuk on Nasdaq Dubai, now totaling $102 billion, but also underscores the market's robust confidence in ICD's financial strength and development mandate.

The five-year Reg S Sukuk, rated A2 (Stable) by Moody’s, A (Stable) by S&P, and A+ (Stable) by Fitch, was priced at 65 basis points over U.S. Treasuries, offering a profit rate of 4.391% paid semi-annually. The issuance witnessed strong demand, with the order book exceeding $2 billion, a testament to the market's confidence in ICD's creditworthiness and its mission to foster private sector growth in member countries.

This is ICD’s fourth Sukuk listing on Nasdaq Dubai, following previous issuances in 2016, 2020, and 2024. The proceeds from this issuance will significantly contribute to accelerating private sector growth across ICD’s member countries, in line with its commitment to expanding Shariah-compliant financial solutions.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), emphasized the importance of this listing in strengthening Dubai’s standing as a global hub for Islamic finance. The strong investor demand underscores Dubai’s role as a preferred destination for high-quality Sukuk offerings, enabling access to a broad and diverse investor base.

Investors considering this instrument should weigh the strong credit ratings and the oversubscription of the issuance as positive indicators. However, considering the neutral outlook on the company, it might be prudent to adopt a 'hold' strategy to assess future market conditions and developments in the Islamic finance sector.