Arab News, Thursday, Nov 24, 2022 | Rabi Al Thani 29, 1444
UAE market goes into overdrive as economy improves
The UAE business fraternity puts the pedal to the
metal this week with a slew of announcements reflecting its capital adequacy and
financial stability in the public and private sectors.
Dubai Islamic Bank, rated A3 by Moody’s and A by
Fitch, on Wednesday priced its inaugural sustainable sukuk, a $750 million
5-year senior issue with a profit rate of 5.49 percent per annum, representing a
spread of 155 basis points over five-year US Treasurys.
According to a press note, it is the first-ever
sustainable sukuk from a UAE financial institution and the largest from a bank
based in the Gulf Cooperative Council region since February 2022.
The sukuk, listed on Euronext Dublin and NASDAQ
Dubai, was created to finance green and social initiatives and projects.
“We are delighted to have issued our inaugural
sustainable sukuk today. This deal was very important for DIB given our strong
commitment to Sustainable Finance and the UAE’s Net Zero agenda and the Dubai
Clean Energy Strategy,” said Adnan Chilwan, group CEO of DIB, in a statement.
On Tuesday, ADIB Securities, a Shariah-compliant
brokerage firm and a wholly-owned subsidiary of Abu Dhabi Islamic Bank, reported
over 22 billion dirhams ($5.99 billion) worth of trades for the nine months
period ended Sept.30.
The brokerage reported a 149 percent increase in
the utilization of its digital trading platform compared to the same period last
year. The growth was primarily driven by a strong increase in the number of
transactions routed through the company’s digital channels, from 68 percent to
73 percent over the same period.
“Q3 (third quarter) was a very busy time for us
here at ADIB Securities. We have grown the number of new accounts opened by 87
percent, and our number of transactions has risen by 83 percent,” said
Khaled Kurdieh, general manager at ADIB Securities, in a statement.
He said new IPOs and global market volatility have
provided investors with opportunities to trade more frequently while maintaining
focus on the long term.
Etihad Credit Insurance, the UAE Federal export
credit company, received “AA-” or a very strong rating for the fourth
consecutive year by Fitch Ratings, reflecting the company’s role in supporting
the diversification of the UAE economy.
The primary driver for these robust ratings is
ECI’s strategic governmental function in promoting UAE’s non-oil exports and
strategic sectors’ development to achieve the country’s economic agenda.
“This positive rating reflects the confidence of
the international organizations and global rating agencies in the UAE in
general, and it also confirms the creditworthiness of the company,” said
Abdullah bin Touq Al Marri, minister of economy and chairman of ECI board of
As part of the UAE’s vision to adopt global best
practices for accounting and finance, the Ministry of Economy on Wednesday
introduced the UAE Fellowship Program to reform the auditing profession in the
All candidates applying for an audit-practicing
license in the UAE are required to successfully complete the mandatory
certificate examinations provided by the Association of Certified Chartered
Accountants in the Middle East in partnership with the ministry.