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The Emirates News Agency reported that the Abu Dhabi-listed lender priced the Reg S instrument at a profit rate of 5.85 percent, equivalent to 105 basis points over five-year US Treasuries after tightening 30 basis points from initial guidance on the back of robust demand. The issuance was conducted through SIB Sukuk Company III with Sharjah Islamic Bank acting as obligor and the notes priced at par. Standard Chartered served as bookrunner while the sukuk carries an A- rating from S&P Global Ratings in line with the bank’s own issuer rating.
Zawya reported that the order book exceeded $1.2 billion excluding joint lead manager interest which allowed the bank to achieve the improved pricing level from the starting point around 135 basis points over US Treasuries. The transaction forms part of the bank’s $3 billion trust certificate issuance programme and will be listed on Euronext Dublin as well as Nasdaq Dubai. This outcome reflects sustained appetite for the bank’s paper among regional and international buyers.
Fitch Ratings data shows that outstanding sukuk across the UAE reached about $68 billion at the end of the first half of 2026 representing a marginal increase from the year-earlier period. The agency recorded $4.5 billion in sukuk issuance during those six months down sharply from $14.3 billion a year earlier amid regional conditions that affected activity. The latest deal from Sharjah Islamic Bank contributes to second-half momentum in a market where the authority expects the UAE to remain a leading global sukuk participant.
A Moody’s assessment projected global sukuk issuance for the full year 2026 to total around $280 billion broadly in line with 2025 levels with a gradual recovery anticipated in the second half as GCC issuers increase their presence. The report highlighted that first-half volumes edged up 2 percent to $130 billion supported by short-term and corporate activity despite geopolitical uncertainties. Sharjah Islamic Bank’s successful pricing aligns with the trend of strong demand for high-grade Shariah-compliant instruments from established UAE financial institutions.
The Emirates News Agency noted that the five-year tenor and senior unsecured structure position the sukuk as part of the bank’s broader strategy to diversify funding channels while maintaining prudent liquidity management. Participation drew from a wide investor base spanning the Middle East Europe and Asia underscoring confidence in the bank’s credit profile. This marks one of several capital markets transactions completed by the lender in 2026 building on earlier deals that similarly benefited from oversubscription.
Fitch Ratings forecasts the overall UAE debt capital market to surpass $350 billion during 2026 driven by ongoing funding diversification plans across government banks and corporates. The agency pointed to regulatory reforms and the dirham monetary framework as additional supports for sustained growth in both conventional and Islamic segments. Sharjah Islamic Bank’s latest issuance adds to the diversity of activity on platforms such as Nasdaq Dubai which has established itself among the top global venues for dollar-denominated sukuk listings.
