UAE based Ajman Bank, a major Islamic financial institution, has launched its first ever five-year Reg S sukuk. By executing this strategic move, Ajman Bank has ensured its position as an active player in the UAE’s financial landscape and has matured as the second lender within the UAE and the region to tap the sukuk market post recent market developments driven by the latest international tariff announcements originating from the USA. Ajman Bank has taken a proactive approach with the issuance of this sukuk, a sign that the UAE’s Islamic finance sector remains resilient and dynamic. With Ajman Bank joining the ranks, the UAE is a consistent source of sukuk issuances.
Ajman Bank Appoints Financial Institutions to Lead its Landmark Sukuk Programme, Funded in the UAE
Ajman Bank, one of the leading financial institutions in the UAE with a current BBB+ rating (Stable) by Fitch Ratings, has carefully appointed and appointed a range of leading financial institutions to act as Joint Global Coordinators, in relation to this significant sukuk issuance. The prestigious mandated banks include Emirates NBD Capital, FAB J.P. Morgan, and Standard Chartered Bank that played a vital role in the sukuk offerings locally and globally. In addition, a strong syndicate of ADCB, ADIB, Citi, DIB, KFH Capital, Mashreq, QNB Capital, Sharjah Islamic Bank, ICD, and Warba Bank to act as joint lead managers and joint bookrunners on the issuance of this sizeable sukuk for Ajman Bank. The cooperate outreach reflects the significance of this sukuk issuance to the UAE financial market and to support Ajman Bank in its growth path in the UAE.
The sukuk will be issued under Ajman Bank’s US$1.5 billion trust certificate issuance programme, a long established and consistent framework under which the sukuk and potentially future sukuk issuance opportunities by Ajman Bank will be able to be offered/structured. The offering will be a benchmark size fixed-rate senior unsecured sukuk due five years, the exact final terms and overall size will be determined and adjusted, as appropriate, to market conditions which are particularly sensitive to external events, including developments in international trade policy. Ajman Bank’s strategic foray into the sukuk market provides a much needed favorable appraisal of the prospects of the UAE economy at large, as well as a sign of confidence in the overall stability and growth of the UAE financial system in the backdrop of a global tariff corridor.
Ajman Bank started marketing a domestic-currency denominated sukuk on Wednesday, the first such offering in the world this year, in a sign that Islamic finance is kicking off, although it may do so in a worrying economic climate.
Meanwhile Ajman Bank, underlined its commitment for transparency and enhancing investor communication held global comprehensive investor call with dedicated fixed income investor calls starting Tuesday. These important engagements are purposefully aimed at equipping potential investors with relevant and aggregated information about the offer sukuk that ultimately explains the structure and terms of the sukuk mark, as well as giving a comprehensive look at the fundamentals and outlook of Ajman Bank. Results of these crucial conversations, likely tempered by investor sentiment regarding the complex geopolitics of tariffs and its effects on the UAE and region, will be key in determining the final details behind Ajman Bank’s first sukuk issuance success. Ajman Bank has arranged this offering of historic size to benefit from strong demand on the price confirmation day and the UAE financial community and international investors will be monitoring market reaction to this transaction.
The issuance itself debuted the day after a larger $500 million issuance by Mashreq Bank that just days earlier became the first lender from within the Gulf Cooperation Council (GCC) to tap the sukuk market. According to reports, Mashreq Bank’s first ever sukuk attracted broad and heavy demand from a diverse group of investors, indicating that the market may have a positive and solid appetite for such Sharia-compliant issues, despite ongoing negotiations and concerns about global protection and economic fallout on countries throughout the region, including the UAE. This has reaffirmed the strong turnaround in the UAE and regional sukuk markets and Ajman Bank is taking optimal advantage of this.
UAE and GCC Sukuk Market: Growth, Resilience and Outlook Despite Tariff Changes
Sukuk issuance in UAE in its most rigid form of Islamic financial certificates designed in a way to be fully compliant with the principles of Sharia law, has matured into a core and growing segment of UAE and GCC financial markets. Attracting significant and increasing investor interest both in the region and in global Sharia-compliant investment markets, these new financial instruments represent a relatively low-risk and ethical investment proposition compared to conventional interest-bearing bonds. This bold step by Ajman Bank to enter the well-established sukuk market is in itself a strategic decision which highlights the continued development and increasing diversification of the dynamic and resilient Islamic finance sector in the UAE and the wider GCC region, despite the changing and often uncertain global trade landscape and the current ongoing discussions surrounding tariffs that could impact investor confidence and market conditions in the UAE. Despite the uncertainty over the current tranche of tariffs, it seems that the excitement for sukuk issuances here in the UAE has not been hindered with Ajman Bank stepping into the UAE sukuk space.
Other Key Insights
Sukuk demonstrated substantial and consistent growth over the past half-decade across the UAE market, with total outstanding sukuk and bonds valued to an impressive US$ 309.4 Billion by the end of Q1 2025, showing a significant year-on-year growth of 8.3%. Such sustained growth indisputably demonstrates a solid, well-developed and growing Islamic finance market in the UAE, attracting both regional and international investors requiring Sharia-compliant assets. In addition, the UAE has been increasingly becoming a prominent player in the high-growth green sukuk issuances sector, which is a clear indication of their long-term commitment towards sustainable finance schemes and responsible investments in the region. UAE sukuk market performance, growth also a key barometer of investor confidence in the UAE economy and wider regional financial stability, possibly impacted by overarching global economic topics, including the unfolding debate around international tariff policy. Ajman Bank’s first sukuk issuance highlights this ongoing growth and diversification in the UAE sukuk market, as well as the role of the UAE as a center for Islamic finance.
The sukuk market in the UAE has grown considerably in recent years, with far superseded sukuk and bonds reaching $309.4 billion at the end of Q1 2025, up 8.3 percent on a year-to-year basis. So, it shows that the Islamic finance sector within the UAE is powerful but also growing. In addition, the UAE has also shown commitment to sustainable finance initiatives by leading green sukuk issuances in the region. The relative performance of the UAE sukuk market continues to be a useful indication for investor sentiment within this region that may be affected by the changes in the global economy like tariff policies. This includes the UAE growth, supported by the issuance of sukuk by Ajman Bank. Islamic finance has been a strategic focus for the UAE since the mid-2000s, and it is regarded today as a global hub of the rapidly growing industry. One of the active specializations for the UAE is the design of the Sharia-compliant financial instruments. Sukuk market is growing in the UAE thanks to its supportive regulatory environment. Foreign Investment the UAE is open to foreign investment in its Islamic finance sector. Over the years, the UAE has been a continual innovator when it comes to Islamic banking and finance. Ethical finance is at the root of the UAE’s sukuk market Two sukuk are listed in the UAE, one a well-known double currency issuance from a regional heavyweight which continues to provide a relatively secure home to this asset class. The International nature of the UAE in Islamic finance
The UAE has a dynamic economy, and institutions like Ajman Bank play a vital role in its growth. Ajman Bank contributes significantly to the financial sector of the UAE, offering a range of services. The growth of the UAE is supported by the financial stability provided by banks such as Ajman Bank. Ajman Bank‘s operations are aligned with the economic vision of the UAE, fostering development. The UAE‘s banking sector, with key players like Ajman Bank, is crucial for attracting investment. Ajman Bank is committed to supporting the diverse financial needs of businesses and individuals in the UAE. The UAE‘s economy benefits from the innovation and customer-centric approach of Ajman Bank. Ajman Bank‘s financial products and services are designed to meet the evolving needs of the UAE market. The UAE provides a supportive environment for financial institutions like Ajman Bank to thrive. Ajman Bank‘s success is closely linked to the overall economic prosperity of the UAE.
Ajman Bank is a key financial institution in the UAE, known for its strong performance. The strategic vision of Ajman Bank contributes to the economic diversification efforts in the UAE. The financial stability of the UAE is enhanced by the presence of institutions like Ajman Bank. Ajman Bank plays a crucial role in facilitating trade and investment activities within the UAE. The growth of Ajman Bank reflects the overall strength of the banking sector in the UAE. Ajman Bank is dedicated to providing Sharia-compliant financial solutions to customers across the UAE. The success of Ajman Bank is a testament to the resilience and adaptability of the UAE‘s financial landscape. Ajman Bank‘s commitment to innovation and service excellence makes it a valuable asset to the UAE economy. The UAE‘s financial sector is strengthened by the contributions of Ajman Bank.
