The Government of Sharjah has issued a $1 billion sukuk on a 10 year maturity, in the Emirate largest deal and this year’s first sovereign government bond issued in the global market from the Middle East region. The sukuk issuance process was successfully completed with a high demand from investors, the government indicated, adding that the demand was double what the Emirate had issued, highlighting Sharjahs stable economic and financial standing and investors confidence in it. Director-General of Sharjah Finance Department Walid al-Sayegh announced: “We were confident that Sharjah sukuk issuance would be successful due to the Emirate’s economic and financial status on a regional and global level.” Sayegh indicated that in the business and financial world, the Emirate’s balance of investment is great, given its diverse and massive financial resources, which allows it to occupy a prestigious position considering that it is a trusted investment environment. 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 issuance. The Director-General stated that this reaffirms Sharjah’s aim to fulfill its financial commitments, and reflects the confidence of global institutions in its financial system. The revenue from these sukuk will be used for infrastructure projects, as well as urban and financial development of Sharjah, according to Sayegh. The lead arrangers for the issue were Sharjah Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered. In September, Sharjah Government announced its first sukuk of $750 million and a 3.764 per cent profit rate for 10 years. Back then, the government said that accessing the debt capital markets through a debut sukuk issuance met a number of important objectives. “From a financial perspective, the transaction has helped the government to diversify its investor base, access longer fixed-term tenors and optimize pricing,” indicated the government, adding that from a wider economic perspective, the issuance will provide a benchmark for any transactions undertaken by Sharjah entities in both the wider public sector and the private sector. It will also enhance the efforts of the UAE authorities to develop the local financial markets.