The Government of Sharjah has issued a $1 billion sukuk on a 10-year maturity, Walid Al Sayegh, director-general of Sharjah Finance Department, was quoted as saying report carried by Emirates news agency Wam.

"We were confident that Sharjah’s sukuk issuance would be successful due to the emirate’s economic and financial status on a regional and global level. In the business and financial world, the emirate’s balance of investment is great. The emirate has diverse and massive financial resources, which allows it to occupy a prestigious position considering that it is a trusted investment environment,” he added.

Al Sayegh pointed out that the timing behind the issuance makes this the first sovereign sukuk issued in 2018 in the region, and that the scope and volume of demand indicates the strength of the financial system of the emirate, its diverse sources of income and its advanced infrastructure.

He further revealed that this is the largest sukuk issuance by the government of Sharjah, which previously carried out two issuances. He said that this reaffirms the emirate’s aim to fulfil its financial commitments, and reflects the confidence of global institutions in the financial system of Sharjah. Al Sayegh said that the revenue from these sukuk will be used for infrastructure.

The lead arrangers for the issue are Sharjah Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered.