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25 February 2020
ECONOMY

GFH Financial Group rings market-opening bell at Nasdaq Dubai to celebrate listing 300 million Sukuk

Dubai maintains its momentum in attracting regional and international Sukuk

by William Mullally

Jassim Alseddiqi, Chairman of GFH Financial Group (GFH), rang the market opening bell today at Nasdaq Dubai to celebrate the listing of the Group’s  $300 million Sukuk on the region’s international exchange.

The Sukuk is a landmark achievement for GFH as it enters the international debt capital markets. The capital raised supports the expansion of Bahrain-based GFH’s activities, enhancing the financial position of the Group and funding its next phase of growth.

The five-year Sukuk was oversubscribed 2.5 times with a total book size exceeding $750 million. 53 per cent of the issuance has been allocated to regional investors and 47 per cent to international investors. Fund managers accounted for 61 per cent of the investors and 39 per cent were financial institutions.

“Listing our Sukuk on a well-regulated and international trading platform like Nasdaq Dubai, will expand GFH’s reach and visibility among the global and regional investor community. The overwhelming response received on our Sukuk issuance demonstrates the strong confidence investors have in GFH and its future potential. As we embark on the next phase of our growth, we remain committed to further strengthening our position as a leading regional and international financial group,” Jassim Alseddiqi, Chairman of GFH Financial Group, said.

 “This listing by GFH Financial Group, one of the region’s most prominent institutions, further strengthens the longstanding ties between the capital markets of Bahrain and Dubai. Dubai is committed to increasing its collaboration in Islamic finance with institutions across the GCC as the Emirate expands its role as one of the largest venues in the world for Sukuk listings,” His Excellency Essa Kazim, Governor of DIFC, Secretary General of Dubai Islamic Economy Development Centre (DIEDC) and Chairman of Dubai Financial Market (DFM), said.

Dubai’s Sukuk listings by value now total $65.995 billion. UAE issuers account for 47 per cent of these by value with 53 per cent from issuers based in other countries.

As the region’s international exchange, Nasdaq Dubai is positioned to provide Sukuk listed on its market with a high public profile globally and regionally. In 2020 and beyond we will build on the strong growth trend in our Sukuk market, which attracted its highest annual value of $14.15 billion of new listings in 2019,” Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said.  

 “GFH’s listing is an important step forward in Nasdaq Dubai’s successful strategy of attracting high quality Islamic capital markets issuers across a wide range of industry sectors, from the region and internationally. We are further expanding our relationships in the Sukuk asset class to support the needs of issuers, investors and the wider economy,” Hamed Ali, Chief Executive of Nasdaq Dubai, said.

GFH’s Sukuk listing on Nasdaq Dubai took place on 23 February.

GFH was the first non-UAE company to be included in Nasdaq Dubai’s equity futures market in 2018. Trading the futures enables investors to take positions on price movements in the company’s shares listed on Dubai Financial Market.  Shares of GFH are also traded on the Bahrain Bourse and Boursa Kuwait. 

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