Source: Construction Week Online

DAMAC Real Estate Development Limited (DRED), a wholly owned subsidiary of DAMAC Properties PJSC, has issued a $500m sukuk.

In celebration of the sukuk listing on Nasdaq Dubai, Hussain Sajwani, chairman of DAMAC Properties, today took on the responsibility of ringing the market opening bell.

According to UAE state news agency, WAM, the listing is in line with DAMAC Properties’ capital-raising initiative as it pursues its property development strategy.

The sukuk reportedly received strong interest from institutional investors across the Middle East, Europe, and Asia. It is the second sukuk listed by the Dubai-based developer on Nasdaq Dubai, following a $650m listing in April 2014.

The bell ceremony was carried out in the presence of Essa Kazim, governor of Dubai International Financial Centre (DIFC), secretary-general of Dubai Islamic Economy Development Centrem (DIEDC), and chairman of Dubai Financial Market, DFM, and senior representatives of DAMAC Properties; as well as Hamed Ali, chief executive of Nasdaq Dubai.

Sajwani commented: “Our latest sukuk listing provides valuable financial underpinning for our strategy of delivering luxury living to the region, including a development portfolio of more than 44,000 residential units at various stages of progress and planning, as well as more than 13,000 hotel rooms and hotel apartments under development.”

Kazim, meanwhile, said: “DAMAC Properties’ strategy to raise capital through sukuk underlines Dubai’s growth as a centre for both issuance and listing of this important asset class, drawing on the abundant Islamic finance expertise that is based in the emirate.

“Sukuk plays an important role in the initiative for Dubai to be the global capital of the Islamic economy launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”

Dubai’s sukuk listings are said to have already reached $53.7bn, the largest amount of any listing venue in the world.