DUBAI– The government of Indonesia on Sunday listed two Islamic bonds (sukuk) with a total value of 3 billion U.S. dollars on Nasdaq Dubai, the international exchange of the banking free zone Dubai International Financial Center (DIFC).
Nasdaq Dubai said in an e-mailed statement that the two new listings underlined “the close relations between the United Arab Emirates (UAE) and Indonesia, the world’s most populous Muslim country, as well as Dubai’s growth as the global capital of the Islamic economy.”
The Indonesian government is the largest sukuk issuer on Nasdaq Dubai by both value and number of listings, with all Sharia-compliant securities now valued 14.5 billion U. S. dollars from 10 issuances, the exchange added.
A sukuk does not pay interest but distributes a profit share based on a tangible asset (such as real estate or commodity) to the investors on a regular basis.
The total value of all sukuk listed on Dubai’s exchanges has now reached 56.47 billion U.S. dollars, making the market the biggest regulated trading platform for sukuk globally, ahead of its rivaling exchanges in Kuala Lumpur, Luxembourg and London.