ABU DHABI, UAE – Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has been appointed as a primary dealer for UAE’s Federal Treasury Sukuk Program.
This new program has been launched by the federal government of the UAE, through the Ministry of Finance (MOF) and aims to issue Sukuk through Shariah-compliant structures as approved by the Higher Shari’ah Authority.
The Federal Government has previously had a conventional bond issuance program in the UAE and is now introducing a Sharia-compliant Treasury Sukuk.
The program for conventional T-bonds was initiated April last year with the participation of six local and international banks, with an aim to create a yield curve for the Emirati Dirham.
The program also offers investors a low-risk opportunity to invest in the local currency for mid and long-term periods.
Abdul Qadir Khanani, Group Treasurer at Abu Dhabi Islamic Bank (ADIB), said, “We are proud to have been appointed as a primary dealer for the program. The recent extension to include Sukuk through Sharia-complaint structures, as approved by the Higher Sharia Authority, is indeed a significant development.”
He said, “It ensures that Islamic banking and finance adhere to the principles of Sharia law, offering increased options for investors looking to invest in Sharia-compliant financial products.”
Khanani added, “This appointment will allow ADIB to offer allocated Sukuk to its customers and to other qualified investors in the secondary market which will further enhance ADIB’s position as a leading Sharia-compliant bank and will support our growth plans.”
The move is a testament to ADIB’s commitment to supporting the growth of Islamic finance in the UAE and across the region.
ADIB’s expertise will enable it to offer innovative financial solutions to investors and help them tap into the potential of Islamic finance and make it more accessible.
It is also expected to attract both local and international investors, supporting the development of the UAE’s financial market and further strengthening and widening its position as a leading financial hub in the region.
