Sharjah Islamic Bank has raised $500 million through a five-year SIB sukuk issuance. The deal attracted strong demand from international investors. The order book reached $1.3 billion during the transaction. That figure represented 2.6 times the total amount offered.
The bank priced the sukuk at a final yield of 5.85 percent. The pricing represented a spread of 105 basis points over five-year US Treasury securities. Moreover, the transaction marks another step in the bank’s international capital markets strategy. Sharjah Islamic Bank entered the sukuk market in 2006. Since then, the bank has completed 13 sukuk issuances.
Strong investor demand supported the latest transaction. Meanwhile, global sukuk markets continue to show resilience despite ongoing uncertainty. Moody’s Ratings expects total sukuk issuance to reach about $280 billion during 2026. That forecast remains broadly in line with the level recorded during 2025. However, geopolitical tensions continue to affect parts of the global financial market.
Sukuk issuance reached about $130 billion during the first half of 2026. That figure marked a slight increase from the comparable period. Corporate issuers played a major role in supporting market activity. At the same time, short-term sukuk issuance recorded a sharp increase. This growth helped offset weaker long-term issuance from sovereigns and financial institutions.
Furthermore, demand for Shariah-compliant financial products remains firm. Investors continue to seek different funding and investment opportunities. Banks also want to diversify their funding sources. Sovereigns face ongoing financing needs across several major markets. These factors continue to support activity across the sukuk sector.
However, geopolitical risks remain an important consideration for the market. Those risks have also affected green and sustainable sukuk activity. Despite these challenges, longer-term growth prospects remain strong. Market participants continue to monitor demand across corporate and financial issuers.
Mohamed Abdalla, chief executive of Sharjah Islamic Bank, welcomed the latest transaction. He said the deal demonstrates investor confidence in the bank. He also pointed to the bank’s financial performance and long-term strategy. According to Abdalla, capital markets remain important to the bank’s funding plans.
The latest issuance also supports Sharjah Islamic Bank’s broader liquidity strategy. The bank continues to develop its presence in international capital markets. Additionally, it aims to maintain disciplined balance sheet management. This approach supports its funding requirements and longer-term growth objectives.
Ahmed Saad, deputy chief executive of Sharjah Islamic Bank, also highlighted the investor response. He pointed to the $1.3 billion order book as evidence of strong demand. The order book reached more than twice the amount offered by the bank. Therefore, the transaction gave the bank access to a broad investor base.
Saad also said the transaction provides greater funding flexibility. It allows the bank to diversify its liquidity sources further. In addition, the deal supports the bank’s long-term funding plans. The issuance therefore adds another international transaction to its capital markets record.
The successful SIB sukuk issuance comes as global sukuk activity continues to evolve. Corporate participation has helped sustain issuance volumes this year. Meanwhile, banks and governments continue to use sukuk for funding needs. Investors also maintain interest in Shariah-compliant instruments.
Overall, the transaction strengthens Sharjah Islamic Bank’s access to international funding markets. It also demonstrates continued demand for high-quality sukuk offerings. With investors placing $1.3 billion in orders, the bank secured substantial demand. The SIB sukuk therefore adds to the bank’s established international issuance record.
