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Tag: NASDAQ Dubai

  • NASDAQ Dubai plans to launch sukuk exchange

    NASDAQ Dubai plans to launch sukuk exchange

    NASDAQ Dubai plans to launch sukuk exchange

    NASDAQ Dubai, one of the emirate’s two financial markets, is to open a platform that will allow investors to trade both Islamic and conventional bonds.

    In a statement the exchange said that tradable securities will initially comprise at least 12 sukuk, or Islamic bonds, and conventional bonds that are listed on the bourse, with a nominal value of $10.9bn.

    The platform will be available to high-net worth and institutional investors, and will be opened gradually over the coming weeks, NASDAQ Dubai said. Trades will be automatically be routed for settlement at Euroclear Bank.

    “The new platform is a natural extension of Dubai’s existing role as a centre for sukuk and bond issuance and listing,” said Essa Kazim, chairman of Borse Dubai, holding company for Dubai’s stock markets.

    “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,” Kazim added.

    Prices for NASDAQ Dubai-listed sukuk and bonds will be visible to traders simultaneously on a screen-based system through the exchange, which the bourse says will boost transparency and efficiency in the secondary market and promote liquidity.

    At present, bonds and sukuk are only tradable through lenders offering investors different trading structures and prices, known as ‘over-the-counter’ trading.

    In March this year acting NASDAQ Dubai CEO Hamed Ali told Arabian Business that the exchange will “easily” become the world’s largest sukuk market by next year.

    Billions of dollars worth of sukuk are expected to be listed on the NASDAQ this year and in 2014, helping to propel it from being the third largest sukuk market globally to the first.

    “If we consider the activities expected in the market this year and next year we can easily become number one within the coming one to two years,” Ali said.

    “Our plan is very strong for this year and potentially next year, it keeps on growing. If we end up attracting between 20 to 30 percent of that we’re easily number one.”

    Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid announced in February the emirate’s intention to become the leader in sukuk.

    NASDAQ Dubai will need to issue nearly $20bn worth of sukuk – twice as much as it presently has – in order to take over London as the largest market for the bonds.

  • NASDAQ Dubai is the largest sukuk market in the world market next year

    NASDAQ Dubai is the largest sukuk market in the world market next year

    NASDAQ Dubai

    Can become NASDAQ Dubai, the largest sukuk market in the world next year, according to what he said Hamed Ali, Acting Chief Executive of NASDAQ Dubai, Arabian Business.

    Ali added that the instruments worth billions of dollars, it is expected to be listed on NASDAQ Dubai in the current year and next, which will raise the order stock from third world to the first position as a market instruments.

    Ali said that if we take into account the expected versions on the market this year and next, we could become the number one market in the world within the next two years. He added that our strong for the current year and the next as well, and the process continues. He said if attracted 20 to 30% of the instruments that will be issued in the current year and the next, we will be very easily, the first market in the world for the instruments.

    The need of NASDAQ Dubai to the inclusion of approximately $ 20 billion of the instruments, to excel on the London Stock Exchange, and be the largest market for instruments in the world, and this size double what is currently listed.

    Ali said in another interview with Bloomberg, The NASDAQ Dubai will open a new market for small and medium-sized enterprises, to promote the inclusion of companies in the financial free zone.

    He added that the exchange is working to determine the minimum percentage of shares that need small and medium-sized companies to put up for public trading and the market value of the minimum required, to merit the company listing on the stock exchange.

    And that NASDAQ Dubai held meetings with an advisory board, including representatives from the sector and experts to identify those things. Ali said, “We are sure of the progress we have made, we are on the right track, and there will be good news in the current year.” Ali said, “We are in a strong position, and we are the first destination in the region to create small and medium-sized companies.”

    According to regulations of NASDAQ Dubai to put the company at least 25% of its shares for trading, and not less than the market value of the company for $ 10 million, so that could be included.

    Dewa excluded instruments before 2015

    Saeed Mohammed Al Tayer said CEO of the Dubai Electricity and Water (Dewa) yesterday, said the agency expects to issue more Islamic bonds (sukuk) by 2015, demand growth remained stable electricity in Dubai.

    And Saeed Mohammed Al Tayer said in a press conference, said the agency will not issue a sukuk or other traditional bonds in 2013, will not issue a sukuk through 2014 unless changes growth of electricity consumption to 10%, or changed the targeted growth rates. He stated that the current growth of 4-5%, expected no more than that.

    He said that the Commission would wait to see if there is any change requires increased liquidity, stressing that they have time until 2015 to study the matter.