Nasdaq Dubai Captures Majority Of Sustainable Sukuk Market In Q1 2024

In a significant move towards sustainable finance, Nasdaq Dubai has emerged as a leading platform, securing over 50 percent of USD-denominated sustainable sukuk, including environmental, social, and governance sukuk, by the first quarter of 2024. This development was highlighted by Ian Johnston, Chief Executive of the Dubai Financial Services Authority (DFSA), during the closing ceremony of the Capital Markets Summit 2024 held in Dubai. Johnston underscored the critical role of mobilizing private capital to achieve net-zero emissions and pointed out the strategic position of the Dubai International Financial Centre (DIFC) in this global endeavor.

Johnston emphasized the DIFC's robust infrastructure and regulatory framework as pivotal in attracting issuers from diverse sectors and countries for the issuance and listing of sustainable bonds and instruments. This has not only positioned Nasdaq Dubai but also the DIFC as a global hub for sustainable finance. Furthermore, he revealed a pioneering initiative announced during COP28 by the DFSA, which includes a full waiver of regulatory fees for listing sustainability-related securities in 2024. This unprecedented move aims to foster the growth of a vibrant and sustainable capital market within the DIFC.

The waiver of regulatory fees is expected to save companies tens of thousands of dollars in transactions, thereby encouraging more issuers to consider listing their sustainability-related securities in Dubai. Johnston's announcement reflects a significant commitment to sustainable finance and positions the DIFC and Nasdaq Dubai at the forefront of global efforts to mobilize private capital for environmental and social governance initiatives.

As the world gravitates towards more sustainable investment options, initiatives like these are crucial for not only promoting green finance but also for establishing Dubai as a preferred destination for global issuers looking to contribute towards a more sustainable future. The DFSA's innovative approach to supporting sustainability through financial incentives marks a milestone in Dubai's journey towards becoming a leading international financial hub with a focus on sustainability.

With inputs from WAM