Ras Al Khaimah government completes $1 billion sukuk issuance
The Government of Ras Al Khaimah tapped the international debt capital market after 10 years and the issuance of the sukuk was completed under the government's $2 billion trust certificate issuance programme which was signed on February 28.
The sukuk was issued under the programme by RAK Capital, a special purpose vehicle affiliated with the Government of RAK. The issuance follows S&P Global Ratings' affirmation of its 'A' rating and Fitch's affirmation of its 'A+' rating on RAK Capital's sukuk programme, which is in line with the credit agencies' ratings for the emirate's government.
The sukuk is consistent with the most recent Shariah developments, as promulgated by the UAE Central Bank Higher Shariah Authority, with the sale of the ijara assets being an enforceable sale with a specific exemption by decree for registration of the real estate ijara assets. 'In this manner, the RAK Government has adhered to the most Shariah-compliant structure,' a statement said.
The RAK government announced the issuance on March 3 and conducted virtual roadshows to meet multiple investors from across the globe, including Asia, the GCC, Europe and the UK. Following the successful roadshow, RAK Capital priced the transaction on March 5 while listing the sukuk on Nasdaq Dubai.
The transaction was launched at an initial pricing guidance of 10-year US Treasury plus 120 bps. Strong investor demand and an orderbook of over $4.4 billion enabled the government to compress the final pricing by 40 bps to 10-year US Treasury plus 80 bps. The issuance was subscribed by global investors including 57.8 per cent from Mena, 35 per cent from the UK/continental Europe and 7.2 per cent from Asia and others.
Citi and Emirates NBD Capital acted as structuring advisers, while Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK and Standard Chartered Bank acted as joint global coordinators.
An official spokesperson said: 'The Government of Ras Al Khaimah is delighted with the overwhelming response that we have received from investors globally. The strong investor demand demonstrates confidence in Ras Al Khaimah's creditworthiness, fiscal management and economic fundamentals, which is exemplified by the high oversubscription level of 4.4 times for the issuance. The New Issue Concession priced into the deal was -10 bps, which is a clear recognition of Ras Al Khaimah's strong credit position and a stamp of approval from the international investor community for the Emirate's remarkable growth and success story.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
4 hours ago
- Al Etihad
Wall Street waves amid mixed earnings, crude slides as trade deadline looms
22 July 2025 19:34 NEW YORK (REUTERS)Wall Street gyrated lower and crude lost ground on Tuesday as investors faced a spate of extended mixed earnings, with little progress to show for ongoing talks between the United States and its trading S&P 500 was modestly lower while easing tech shares dragged the Nasdaq into a steeper loss. The blue-chip Dow held on to nominal extended its gain in opposition to the softening dollar and US Treasury yields eased for the third straight session.'(Investors are) looking for additional catalysts and you're seeing some cautious comments coming out of companies,' said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "They're hearing mixed guidance when it comes to all this uncertainty revolving around tariffs and the direction things are heading in."Second-quarter earnings season has hit full-stride, with nearly one-fifth of the companies in the S&P 500 having reported. Of those, 79% have beaten analyst expectations, according to LSEG now expect year-on-year S&P 500 earnings growth of 7.0%, on aggregate, a sizable improvement over the 5.8% growth predicted as of July 1, per the effects of trade war have begun seeping into corporate Motors' GM.N second-quarter core profit slid by 32% as steep tariff costs took a $1.1 billion bite from its bottom line. Prospects of a US-European Union trade deal appeared to be fading as Washington's August 1 deadline loomed, prompting EU members to ramp up possible "anti-coercion" retaliatory Dow Jones Industrial Average rose 38.96 points, or 0.09%, to 44,362.03, the S&P 500 fell 6.29 points, or 0.10%, to 6,299.49 and the Nasdaq Composite fell 89.48 points, or 0.43%, to 20, shares sagged under the weight of disappointing earnings and looming worries over the lack of progress in US trade negotiations. MSCI's gauge of stocks across the globe fell 0.80 points, or 0.08%, to 928.84. The pan-European STOXX 600 index fell 0.47%, while Europe's broad FTSEurofirst 300 index fell 9.88 points, or 0.47%.Emerging market stocks fell 3.99 points, or 0.32%, to 1,249.49. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.24%, to 657.10, while Japan's Nikkei fell 44.19 points, or 0.11%, to 39, dollar continued to edge lower amid a subdued currency market as investors awaited any sign of progress in trade talks ahead of the August 1 deadline. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.28% to 97.57, with the euro up 0.22% at $ resumed its upward climb. In cryptocurrencies, Bitcoin gained 1.82% to $119,134.52. Ethereum declined 1.4% to $3, prices weakened on growing worries over softening demand as the August 1 tariff deadline drew closer. US crude fell 1.56% to $66.15 a barrel and Brent fell to $68.26 per barrel, down 1.37% on the day. Gold prices Spot gold rose 0.9% to $3,425.89 an ounce. US gold futures rose 0.58% to $3,421.70 an ounce.
Al Etihad
8 hours ago
- Al Etihad
Bessent says he will meet Chinese officials, discuss tariff deadline extension
22 July 2025 16:43 WASHINGTON (Reuters) US Treasury Secretary Scott Bessent said on Tuesday that he will meet his Chinese counterpart next week and discuss what is likely to be an extension of an August 12 deadline for higher tariffs. Bessent told Fox Business Network's Mornings With Maria program that trade with China was in "a very good place" and the meetings in Stockholm would take place next Monday and Tuesday."I think we've actually moved to a new level with China, where it's very constructive and... we're going to be able to get a lot of things done now that trade has kind of settled in at a good level," Bessent a previous tariff truce was focused on restarting the flow of Chinese rare earth metals and US semiconductor software and materials, Bessent said that in Stockholm, Trump administration officials would discuss other issues, including reducing China's over-reliance on manufacturing and said that the US was poised to announce "a rash of trade deals" with other countries, and Japan could be among these despite an election setback for Japan's ruling party and difficult negotiations."I wouldn't be surprised if we aren't able to iron out something with Japan pretty quickly," Bessent said. Nonetheless, he said that for most countries, tariffs would "boomerang" back towards April 2 levels from the current 10%, but negotiations on trade deals could continue.
Arabian Post
14 hours ago
- Arabian Post
UAE Emerges as Global Islamic Investment Epicentre
Islamic-aligned transactions in the UAE soared to US $1.53 billion between 2023 and 2024, securing its position as the second-most active market after Indonesia in the global Sharia-compliant investment landscape. These figures, shaped by 50 deals covering mergers and acquisitions, private equity, and venture capital, are drawn from the 11th State of the Global Islamic Economy report by DinarStandard. Indonesia led this period with 40 deals amounting to US $1.60 billion, while the UAE outpaced Saudi Arabia—which recorded 34 transactions worth US $1.08 billion—to capture a significant share of the expanding global halal economy. The UAE's haul forms part of a broader global sector valued at US $7.3 trillion in 2023, including approximately US $2.4 trillion in Muslim consumer spending and US $4.9 trillion in Islamic financial assets. Capital deployment into Islamic-economy-relevant businesses reached US $5.8 billion across 225 deals in the same period. ADVERTISEMENT DinarStandard's Global Islamic Economy Indicator ranks the UAE fourth worldwide, with strong trade linkages, export capacity, and innovation cited as key enablers. CEO Rafi-uddin Shikoh attributed the nation's rise to its 'deep trade networks, ambitious digital and AI agendas and fast-scaling halal manufacturing capacity,' positioning it as 'one of the most influential hubs in the global Islamic economy.' Investment activity was concentrated in mergers and acquisitions, private equity, and venture capital deals. Analysts suggest that growth reflects the UAE's efforts to diversify its economy, extend its fintech ecosystem, and scale halal-certified industries to meet global demand. Across Islamic finance, global assets grew by 9.2% to US $4.93 trillion in 2023/2024, and are projected to reach US $7.53 trillion by 2027/2028 with an annual growth rate of 8.9%. The UAE is expected to be a major driver of this expansion, supported by innovative sukuk issuances, green finance, and fintech developments. The issuer landscape is evolving: green and sustainable sukuk, blockchain-enabled digital sukuk, and conventional sukuk are all attracting investor interest. These encompass renewable infrastructure funding and socially responsible ventures. The UAE, aligning with regional sustainability goals, is primed to attract a growing share of such capital. Technological adoption is accelerating. Dubai and Abu Dhabi are integrating blockchain in capital markets, pushing forward Islamic digital banking and regulatory reforms. Across the Gulf, fintech licensing is expanding alongside digital investment platforms. Even as global sukuk issuance dips—falling from US $119 billion in mid-2024 to US $101.3 billion in the first half of 2025—GCC nations have demonstrated resilience, particularly in foreign-currency sukuk. The UAE's short-term treasury sukuk have garnered strong interest, maintaining liquidity and supporting sovereign financial strategies. Challenges persist. Governance standards and risk management frameworks need strengthening, especially as Islamic finance instruments diversify. Yet, multilateral institutions such as the Islamic Development Bank, which has backed projects including a US $1.15 billion water initiative in Kazakhstan and a €500 million global sustainable sukuk programme, are bolstering ecosystem resilience. Government initiatives in the UAE have also elevated its Islamic financial stature. The cabinet announced plans to more than double Islamic banking assets to AED 2.56 trillion, up from AED 986 billion, signalling strong policy intent to reinforce ethical finance growth. The UAE's halal manufacturing, digital infrastructure and robust regulatory environment are helping attract equity and venture capital, particularly in emerging sectors such as halal food, pharmaceuticals, modest fashion, tourism and fintech. These are among the seven priority segments identified in the SGIE report. Regional competition is intensifying. Saudi Arabia's Vision 2030 reforms and Indonesia's regulatory enhancements have fuelled respective surges in Islamic investment. The UAE is responding by pursuing niche leadership in digital halal finance and global standards to appeal to international stakeholders. Private equity and venture capital are accelerating the sector's globalisation. Investments into halal-aligned startups in coalition with fintech and sustainability platforms are attracting interest from Gulf, Asia-Pacific, and European investors seeking ethical, growth-oriented assets.
