BHM Capital Named Market Maker for UAE Retail T-Sukuk on Nasdaq Dubai

Quick Summary

BHM Capital has been appointed as the official market maker for the UAE's Retail T-Sukuk issuance on Nasdaq Dubai. This move aims to boost Islamic Sukuk liquidity by providing continuous two-way quotes, allowing retail investors to trade Shariah-compliant government securities with increased confidence and price transparency.

How does BHM Capital improve Islamic Sukuk liquidity?

BHM Capital serves as a critical bridge in the Islamic Sukuk liquidity ecosystem by providing continuous two-way quotes for the Retail T-Sukuk issuance. This ensures that there is always a ready buyer or seller in the market, reducing the bid-ask spread and facilitating orderly trading activity on Nasdaq Dubai. By acting as a market maker, BHM Capital helps in improving price discovery, which is essential for maintaining investor confidence in local currency Islamic instruments.

• Continuous quoting to ensure market depth.
• Facilitating secondary market trading before maturity.
• Supporting market efficiency for retail participants.

What are the benefits of the Retail T-Sukuk for investors?

The Retail T-Sukuk is designed to democratize access to the UAE’s Islamic fixed income market, which was previously dominated by institutional players. With a minimum subscription of AED 1,000, the product allows individual investors to earn periodic profit distributions while benefiting from the security of a government-backed instrument. This low entry barrier is a significant step in diversifying investment portfolios for the general public in the UAE.

• Low entry point starting at just AED 1,000.
• Shariah-compliant structure for ethical investing.
• Principal protection for investors who hold until maturity.

How does this move strengthen the UAE capital markets?

By appointing a dedicated market maker for Retail T-Sukuk, the UAE authorities are fostering a more dynamic trading environment. This initiative supports the broader goal of developing local markets and increasing the circulation of the local currency. BHM Capital’s role is pivotal in ensuring that these innovative investment opportunities remain liquid and accessible, contributing to the sustainable economic growth of the region's financial hub.

"Our appointment as Market Maker for the Retail T-Sukuk: Local Currency Islamic Sukuk Issuance reflects BHM Capital's ongoing commitment to strengthening the UAE's capital markets and expanding access to innovative investment opportunities. Market making plays a vital role in enhancing liquidity, supporting efficient price discovery, and creating a more dynamic trading environment for investors. We are pleased to support this important issuance and contribute to the continued growth of the UAE's Islamic capital markets." said Mr. Abdel Hadi Al Sa'di, Chief Executive Officer of BHM Capital.

FF NEWS TAKE:

This appointment is a significant milestone for Islamic Sukuk liquidity in the Middle East. By bringing BHM Capital on board to manage the Retail T-Sukuk, Nasdaq Dubai is effectively lowering the volatility risk for smaller investors. This move definitely moves the needle, as it bridges the gap between high-level sovereign debt issuance and everyday retail participation, further cementing Dubai's status as a global capital for the Islamic economy.