Omniyat Issues $600 Million Sukuk Backed by Bank of Sharjah Amid Strong International Demand

Sharjah | EcoPulse24

Bank of Sharjah, a leading commercial bank in the UAE, announced its participation as joint lead manager and bookrunner for a $600 million US dollar-denominated sukuk issued by Omniyat Holding for a five-year term. The sukuk issuance, managed alongside a consortium of regional and international banks, comes at a time of heightened global debt market caution amid geopolitical tensions and financial volatility. Despite these conditions, the offering attracted robust interest from international investors, with total orders reaching around $1.8 billion - triple the issuance size - highlighting strong confidence in Omniyat's credit profile and the appeal of Dubai's real estate sector.

The initial price guidance was set at 7.625%, but strong investor demand allowed for a 37.5 basis point tightening, resulting in a final yield of 7.25%. The geographic distribution of allocations was notably international, with about 25% going to investors from the UK, Europe, and offshore US markets, underscoring the broadening global investor base in Dubai real estate-linked issuances and the UAE economy.

This transaction marks Omniyat's third sukuk in less than a year, signaling its increasing use of international debt markets to diversify funding sources and support its real estate development plans. Bank of Sharjah CEO Mohammed Khadiri expressed pride in supporting Omniyat's capital markets journey, noting that the successful pricing and increased deal size reflect both the company's credit strength and the bank's expertise in global debt transactions. Acting Head of Treasury Krishna Polibedi highlighted that the deal's success amid ongoing geopolitical uncertainty underscores investor trust in UAE companies and the country's stable economic environment.

EcoPulse24 Analysis:
The success of Omniyat's sukuk issuance demonstrates ongoing global demand for UAE-linked Islamic finance instruments, particularly in real estate, which continues to attract increasing international investment flows into Dubai. The heavy oversubscription showcases the ability of UAE corporates to access international liquidity even during periods of geopolitical volatility, further cementing Dubai's status as a regional hub for sukuk and debt capital markets.