The UAE is leading the global sukuk rally, surpassing the US as a top performer as its real estate developers see their issuances oversubscribed and trade at record levels on the back of an ongoing real estate boom, Bloomberg reports. UAE sukuks delivered an average return of 2.5% since Trump’s inauguration, making it the best performer during the period, followed by Saudi Arabia and Kuwait, according to Bloomberg data.

It’s been a good year for the sukuk market: The global sukuk index has been rising for three consecutive months, marking its second-strongest start to a year.

IN CONTEXT- Global investors are bullish on the UAE as Trump’s tariffs roil global markets and threaten economic slowdowns. Global investment management firm Ninety One said it is increasing its exposure to UAE stocks due to the lack of the UAE’s exposure to Trump's tariffs, with the EM team ramping up holdings of property giant Emaar and First Abu Dhabi Bank, as well as the recently listed Talabat.

Emaar’s robust financials, record sales, and strong liquidity have driven a rise in the value of its sukuk, Arqaam Capital’s fixed-income manager Fady Gendy told Bloomberg. The developer’s 2029 sukuk is trading at its highest level since November 2024.

Aldar’s sukuk performance has also been bolstered by its growing international customer base, with 78% of its sales now coming from expatriates and foreign buyers, up from less than 20% before the UAE’s Golden Visa program. Its latest 10-year USD 500 mn green sukuk was 7.2x oversubscribed, reflecting strong investor demand. The company has sold about USD 1 bn in green sukuk over the past two years.

MARKETS THIS MORNING-

Asian markets are mixed as investors continue to process the impacts of the US’ 25% tariff on auto imports. Japan’s Nikkei is leading losses, falling 2%, while the Topix also dipped 2.2%. South Korea’s Kospi is also down 1.35%. Hong Kong’s Hang Seng, however, is up 0.5%, and mainland China’s CSI 300 is trading flat. Over on Wall Street, futures point to another low open on the back of another losing session.

ADX

9,390

+0.2% (YTD: -0.3%)

DFM

5,120

+1.0% (YTD: -0.8%)

Nasdaq Dubai UAE20

4,239

+0.4% (YTD: +1.8%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.2% 1 yr

TASI

12,025

+0.5% (YTD: -0.2%)

EGX30

32,026

+0.9% (YTD: +7.7%)

S&P 500

5,693

-0.3% (YTD: -3.2%)

FTSE 100

8,666

-0.3% (YTD: +6.0%)

Euro Stoxx 50

5,381

-0.6% (YTD: +10.0%)

Brent crude

USD 73.96

-0.1x%

Natural gas (Nymex)

USD 3.95

+2.3%

Gold

USD 3,115

+0.8%

BTC

USD 87,847

+1% (YTD: -7%)

THE CLOSING BELL-

The ADX rose 0.2 % yesterday on turnover of AED 1.1 bn. The index is down 0.3% YTD.

In the green: Emirates Ins. (+6.7%), Gulf Cement (+6.1%), and Agility Global (+5.0%).

In the red: National Bank of Ras Al Khaimah (-8.4%), Waha Capital (-5.1%) and Abu Dhabi National Company for Building Materials (-2.4%).

Over on the DFM, the index rose 1.0% on turnover of AED 431 mn. Nasdaq Dubai was up 0.4%, and up 1.8% YTD.

CORPORATE ACTIONS-

Alef Education’s general assembly approved distributing AED 199.2 mn dividends for 2H 2024, according to a disclosure (pdf) to the ADX. This brings the total distribution for the year to AED 402.8 mn, or 575.4% of the firm’s paid-up capital. Some AED 135 mn of the total will go to its freefloat market shareholders, with the remaining AED 267.7 mn going to Tech Nova Investment and Kryptonite Investments.

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